End users of polyurethane foam have experienced a supply chain crisis as the impacts of last month’s extreme weather conditions in the South continue to be felt.
Damage to Polyurethane Manufacturing Infrastructure
The severe winter storm that hit Texas caused widespread damage to water and electric infrastructure and ultimately led to the shutting down of power throughout the region that is home to a large amount of oil refineries.
Subsequently, fewer refinery byproducts, specifically those used to produce polyols, were produced. Polyols serve as a vital component in the chemical reaction that creates polyurethane foam.
As a result, urethane foam suppliers invoked the Force Majeure clause (a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise), notifying customers that they will receive a reduced allotment (significantly below normal levels) of raw materials, effective immediately.
This disruption has widespread implications and affects all kinds of industries, including the automotive industry, which uses the foam to create seat cushions.
KPS Global® and all other manufacturers that use polyurethane foam in their products are facing an unprecedented disruption to their supply chain.
We use polyurethane foam to create lightweight, structural amalgamated panels. KPSG’s polyurethane foam is created by a polymerization reaction involving an isocyanate, a polyol resin, and a blowing agent. The resulting compound is a rigid, closed-cell urethane foam (i.e. polyurethane foam) with excellent insulating qualities.
KPSG is in daily contact with suppliers to determine the expected duration of this supply chain interruption.