U.S. automotive OEMs, suppliers meet on PA-12 shortage


On April 17, U.S. automotive OEMs and suppliers met in Detroit to discuss their response to the block on the production of cyclododecatriene or CDT, a vital ingredient in the manufacture of PA-12, an essential resin used in automotive components, according to information from IHS Global Insight Perspective posted on the web site of the Original Equipment Suppliers Association (OESA). The short fall comes following an explosion at the Evonik plant in Marl, Germany, that makes the chemical.

According to IHS Global Insight Perspective, “the implications of the shortfall in global production of CDT are still being digested but the major meeting in Detroit on April 17 between the OEMs and the suppliers showed that the industry is doing its best to respond to the problem and is taking a cohesive approach to the issue.”

While the OEMs and suppliers may be taking a “co-operative approach to dealing with the crisis, the statement released after the meeting would indicate that their options in tackling the crisis may be somewhat limited,” said the IHS report on the meeting. “As such, the potential for significant disruption to the global automotive production network cannot be ruled out at this stage.”...
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