Indonesia's Chandra Asri lifts force majeure on polymer supply

May 5 (Reuters) - Indonesia's PT Chandra Asri Pacific TPIA.JK said on Tuesday it has ended a force majeure on polymer supplies, citing more stable operating conditions and steps taken to secure raw materials amid global supply chain disruptions.

The country’s largest petrochemical producer had declared force majeure on all contracts in early March as the Middle East conflict and the pursuant security concerns around Strait of Hormuz disrupted shipment and delivery of feedstock supplies.

Here are some more details:

• The firm said it had successfully implemented a range of measures to maintain production continuity, including sourcing alternative raw materials from several international markets and optimising its refinery facilities in Singapore.

• The steps were taken despite logistical challenges and higher procurement costs, Chandra Asri said.

• It also added that ethylene production from its olefin cracker facility will now be prioritized for internal polymer plant requirements, supporting the optimisation of polypropylene and polyethylene output.

• Chandra Asri said it was also reinforcing supply continuity through support from monomer and ethylene supplies from group facilities in Singapore.