Petrochemical Industry/Commodity Markets Production Stop Due to Frost - Serbian HIP Declares Force Majeure
Frost damages due to the extreme temperatures in Southern Europe have caused a loss of production for Serbian petrochemical company HIP Petrohemija. Now the firm announced a downtime at its Pancevo PE facility due to force majeure.
Belgrad/Serbia – Severe frost with temperatures below -20°C have caused a production downtime at HIP Petrohemija's PE plant at Pancevo/Serbia: With the country's national grid running at max, electric energy has become rationalised and pipework, feeders and ducts are freezing over. Now the petrochemical firm declared a case of force majeure. A special meeting of HIP's Executive Board had previously decided to operate on technological minimum in all the plants of the company in Pancevo. Effects on the European commodity markets due to this polymer production loss are currently only regional.
A complete shut down to minimum conditions is expected to be realized by Wednesday, February 15th, the company explained. A further problem for the industry in the Republic of Serbia is that the Danube, its main inland waterway, is frozen over and sipping traffic has stopped. With inland ports and terminals frozen, loading or unloading of vessels is currently not possible, HIP explained.
By the end of last week, HIP's production in its LDPE and Petroplast plants had been shut down due to electric power supply restrictions. Safety of production processes and of the employees wopuld not be affected by these measures, HIP speakers explained.