Resin shortage may cut world auto output-supplier

April 13 Fri Apr 13, 2012 7:29pm EDT

April 13 (Reuters) - A shortage of a resin used in making brake and fuel components may cut into global auto production within a few weeks, auto supplier TI Automotive said in a letter to its customers, a source said.

"The shortage is real and immediate. The possibility of production interruptions at some of your facilities in the next few weeks is high," TI Automotive CEO William Kozyra said in the letter, according to the source, an auto supplier who has read it and wished to remain anonymous.

The shortage of a key resin for automakers called PA-12 was caused by a March 31 explosion at a chemical plant in Germany, said the source who is not authorized to speak to the media, citing the letter.

The blast killed two people.

The plant, owned by German industrial conglomerate Evonik Industries, makes a key element of PA-12 called cyclododecatriene, also known as CDT. Kozyra's letter said the CDT production at the Marl, Germany plant has stopped, the source said. Marl is near Essen, Germany.

Kozyra also said suppliers of CDT are few and that Evonik made CDT for several other makers of the auto parts component PA-12, the source added.

A meeting between automakers and suppliers to discuss the matter including alternate sources of resins will be held on Tuesday, moderated by the Automotive Industry Action Group of suburban Detroit.

The letter and the possible automobile production interruption was first reported by Bloomberg News on Friday.

TI Automotive has its headquarters in Auburn Hills, Michigan, near Detroit.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.