November 10, 2017 / 8:36 AM / a month ago

BASF flags vitamin production outage after fire

FRANKFURT, Nov 10 (Reuters) - Chemicals group BASF said a fire at a production facility for aroma ingredients was also leading to a production outage in vitamins and carotenoids, widening a force majeure declaration to suspend its obligations to customers.

BASF last week declared force majeure for certain citral and isoprenol-based aroma ingredients after a fire forced it to shut down a plant at its Ludwigshafen headquarters.

The company will only be able to restart the vitamin facilities once supply of citral, a precursor material for vitamins A and E, is resumed, BASF said in a statement on Friday.

Patrick Lambert at brokerage Raymond James has said that DSM , which competes with BASF in vitamins, would benefit under such a scenario, depending on how long vitamin inventories lasted.

“The impact of the force majeure situation as well as the effects for customers resulting therefrom are being evaluated at the moment. Meanwhile, BASF is implementing measures to limit the consequences of the situation,” BASF said in its statement. (Reporting by Ludwig Burger; Editing by Maria Sheahan)

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