Force Majeure for Nylon PA66 and the shortages of equipment and capacity problems are still topical

At the end of March, we informed you of developments in the availability of the raw materials required to produce our cable ties. At that time, the producers of Nylon PA66 announced a “Force Majeure”, which unfortunately is still in effect today.

Where there are major shortages of various raw materials worldwide, this is not different in the case of Nylon PA66.

Both the European producers and our Asian partners are unable to make agreements with the producers of the required material. The persistent “Force Majeure” means that existing contracts are being unilaterally amended and there is uncertainty about the availability of material, the time at which it may be delivered again and the price level that is used for the material. This even forces manufacturers to close factories for a short period of time.

As it looks now, the end of these developments is not yet in sight. This does not alter the fact that we still do everything we can to get our cable ties delivered. As indicated earlier, despite the current market situation, we continue to consciously opt for the use of Nylon PA66. Other providers choose to use alternative materials (including Nylon PA6). When this is used for production of cable ties, the quality that you are used to from us can no longer be guaranteed and we want to prevent this.

In addition to the shortages of raw materials, the shortages and capacity problems in the global logistics market are also still a concern. The tariffs for shipping goods from Asia in containers remain unchanged at high levels, with further increasing delivery times.

In summary, I dare to say that we are in a situation that we have not experienced before. However, it also offers plenty of new challenges. Thanks to our many years of experience, we have always been able to get our products delivered under continuous changing conditions. Of course this has repercussions on the price level and delivery times. However, we will continue to focus on the availability of the products, so we can continue to provide you with the best possible service.

Gerald Ploeg
Group Managing Director WKK
May 12, 2021