It is no secret that there have been rapid increases in recent months of propylene resins, mainly due to increases in demand and challenges with supply. Plant operations have slowed significantly due to the COVID-19 pandemic, raw materials have been reallocated to produce PPE, and recent weather events have further complicated matters.
In fact, many of our suppliers have declared Force Majeure, indicating that they are at the mercy of market conditions and may not be able to meet the demands of their customers like us and other manufacturers.
HOWEVER, rest assured that we have a very healthy supply chain of raw materials and have ample supply on hand to meet your needs. We are currently evaluating the impact this could have on future production and logistics capability and will contact you directly if your account will be affected in any way.
“We’ve been through rough patches several times in our 31 years,” comments Mike Schilling, PacTec President. “But we are confident the markets will regulate as they always have, and we remain committed to helping our customers through this challenging time.”
As a flexible packaging manufacturer that relies heavily on these raw materials, we are keeping a very close eye on the situation and are in regular talks with all our global suppliers. As a company with a diverse portfolio of products and industries served, we do not see any cause for immediate concern.
If you would like to discuss your individual needs or supply of finished products, please do not hesitate to reach out to your sales professional at 800.272.2832. We will be happy to work with you to make sure your supply chain remains unchanged.
Read this article for a great deep dive into the situation from the professionals at IAFI.