Lack of raw materials and transport difficulties

There are currently an abnormal number of declared Force Majeure from the companies that produce the plastic raw material and the primary products for the plastics. Two weeks ago, it was about 30 active Force Majeure, which is 3 times as many as six months ago. The reasons for the high number of Force Majeure are many, the hurricane season in the autumn as affected refineries as well as the extreme cold and the extensive electricity problems in Texas at the beginning of the year are two important reasons.

There is also an imbalance in the transport system due to changed transport patterns caused by covid-19. Empty shipping containers are not where they need to be. They may be in a completely different place than where the material to be transported is located. Among other things, there are large numbers of ships waiting to unload their cargo off the east coast of the United States, which unlocks large quantities of containers.

-All this together has resulted in the difficult situation we are now facing. There is currently no forecast for how long the problem will persist. The root causes are so complex and varied.

We work intensively to limit the effects of the above-mentioned situation, but it will affect the price primarily on our rigid boards but can also have an effect on other products with a high plastic content and, in the worst case, our ability to deliver.