Wanhua Chemical Declares Force Majeure on Middle East Sales

The petrochemical major Wanhua Chemical Group Co., Ltd., based in China, has officially declared force majeure on its supplies to customers in the Middle East. According to reports from Singapore, the declaration took effect on March 7 following a formal communication sent to clients. The company cited significant logistical challenges as the primary reason for the decision, specifically pointing to regional instability affecting maritime trade. > "We are facing the severe disruption of shipping routes in the Strait of Hormuz, making delivery impossible or unreasonably dangerous," the letter said. The force majeure provision allows a company to suspend its contractual obligations due to extraordinary and unavoidable circumstances. Wanhua Chemical is a major supplier of isocyanates, which are essential components used in the manufacturing of polyurethane products for the automotive, furniture, and bedding industries. Despite the supply disruption to the Middle East, the company’s production facilities in Yantai, Shandong province, remain operational. Wanhua operates two crackers at the site with a combined ethylene production capacity of 2.2 million tons per year. Industry sources indicate that both units are currently maintaining high operating rates. While the company has acknowledged the shipping disruptions, it declined to comment on whether production levels would be adjusted in response to the regional supply chain constraints.