Shortage of raw materials hits global adhesives industry

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Shortage of raw materials hits global adhesives industry

Shortage of raw materials hits global adhesives industry

Industry News
Mar 08,21

German adhesives manufacturer Jowat SE faces a disruption to the supply of key raw materials and adhesive intermediates caused by outages at several European and American chemical manufacturers

Shortage of raw materials hits global adhesives industry

Detmold (Germany)

Outages in Europe and in the USA as well as much limited freight capacities on sea and on land are having negative impact on the availability of raw materials essential to adhesive manufacturing. Jowat SE, the adhesives manufacturer from Detmold (Germany), is facing a disruption to the supply of key raw materials and adhesive intermediates caused by outages at several European and American chemical manufacturers.

Availability of raw materials essential to adhesive manufacturing had already been limited prior to the outages. The situation has been further exacerbated by the recent severe winter weather in the US South which has led to the loss of a large part of refinery and chemical production capacities in the US. This has also impacted the supply chains of JowatÃ¢â‚¬â„¢s international locations. According to the US American Adhesive and Sealant Council (ASC), supply chains in and from the USA will take weeks or even months to recover.

In addition, the situation is made even more challenging by currently long transport times and limited availability of freight capacities on sea and on land. In the global raw material market, this also has a significant impact on the current supply situation in Europe and Asia.

Klaus Kullmann, Managing Director at Jowat SE, Ã¢â‚¬Å“We regret the current shortage situation and are doing our utmost to remain a reliable supplier and partner for our customers. Our global orientation helps us operate in a flexible manner and reduce the negative consequences of supply bottlenecks as far as possible. In this unprecedented situation, however, supply disruptions can hardly be avoided.Ã¢â‚¬Â

Jowat SE, with headquarters in Detmold (Germany), is one of the worldÃ¢â‚¬â„¢s leading suppliers of industrial adhesives, which find applications in sectors like woodworking and furniture, paper and packaging, graphic arts, textiles, automotive, electrical, etc. The company was founded in 1919 and has manufacturing sites in Germany in Detmold and Elsteraue, plus four other producing subsidiaries, Jowat Corporation in the USA, Jowat Swiss AG, Jowat Manufacturing in Malaysia, and the Jowat Universal Adhesives Australia Pty Ltd in Australia.