We are experiencing an unprecedented disruption to the polyurethane foam supply chain that is impacting the cold storage, automobile, and construction industries throughout North
America. The Wall Street Journal shared this article on the impact to global manufacturing.
Earlier this month, all major urethane foam suppliers invoked the Force Majeure clauses in their supply agreements and put their contract customers on allocation based upon previous usage. The cause of the disruption is attributed to COVID related delays at international ports where vessels are waiting weeks to be unloaded and the severe, February arctic storms that impacted gulf coast chemical processing plants. The gulf coast plants experienced major damage with pipes burst and wastewater facilities taken down.
While we are still unsure of the severity of the impact to existing and future orders as we await information from our suppliers, we do know that our ability to fulfill orders and meet requested ship dates will be impacted. Our Regional Sales Managers and Customer Service Teams have been working diligently to contact each of you personally to explain any impact to your projects. While this is completely out of our control, please accept my apologies for any negative impact to your business plans. We are working diligently with our major chemical suppliers, BASF and Dow Chemical, to mitigate the impact to your orders.
Current information from our chemical suppliers indicates that the situation will begin improving sometime in April, and they hope to be back to acceptable production levels by the end of May. However, this is tentative information pending their getting wastewater facilities and production plants repaired and fully operational. We will continue to provide updates as the situation develops and as we are able to get more concrete supply commitments from our suppliers.
Thank you in advance for your understanding and cooperation during this unprecedented supply challenge. We value your business and will do everything in our power to minimize the impact to you and your customers.
To learn more about the impacts to the Gulf Coast plants, please click here to see images of the destruction.
About KPS Global
KPS Global is the industry-leading manufacturer of insulated panel systems, supplier of aftermarket parts and replacement equipment and provider of seamless installation services. The company has five strategically-located manufacturing facilities to serve customers anywhere in the world. The company was formed in December 2015 by D Cubed Group LLC through the acquisition of Kysor Panel Systems from Manitowoc Company, Inc. and the Hill Phoenix Walk-ins Division from Dover Corporation. Headquartered in Fort Worth, Texas, KPS Global is a privately-held company with more than 800 employees.
KPS Global Contact:
Director of Marketing