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(ICIS) -- Shuttered parts plants in Japan
could threaten supply chains all the way in North America, working down to the
chemical industry - although it is too early to forecast what effects this may
have, sources said on Monday.
General Motors (GM) already has suspended production at a plant in
Shreveport, Louisiana, because of a parts shortage. Toyota, meanwhile, has
curtailed overtime at its 13 vehicle and engine plants in North America, the
company said.
Many supplier plants in Japan were destroyed or damaged by the
earthquake, according to a column by Keith Crain, the editor in chief of
Automotive News. If a key part is missing, a producer could suspend all
production, cutting demand for bumpers, tyres and other auto parts.
That, in turn, could reach downstream to the chemical industry, as the
automobile industry is a major end market for such materials as polypropylene (PP); nylon; acrylonitrile butadiene
styrene (ABS); polyurethane flexible foam; synthetic rubber; and
paints and coatings.
The American Chemistry Council (ACC) estimates that each automobile
contains an average of USD 2.700 worth of chemicals.
mrcplast.com
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