LG Bohai Chemical Declares Force Majeure Amid Feedstock Disruption

China’s LG Bohai Chemical Co., Ltd. has informed customers that it has declared force majeure after facing disruptions in raw material procurement linked to escalating geopolitical tensions in the Middle East.

According to a company notice, the blockade of the Strait of Hormuz has created significant difficulties in securing key feedstocks, particularly naphtha and ethylene. The disruption has limited the producer’s ability to allocate sufficient ethylene for its operations.

As a result, the company said it will gradually reduce operating rates across several production facilities. The unexpected supply constraints are expected to disrupt production and sales activities while also leading to uncertain inventory levels.

According to Supply Wizard data, LG Bohai Chemical operates multiple chlor-alkali and vinyl chain units at its Tianjin complex. The site includes two EDC units with a combined capacity of 600,000 tons per year, while the vinyl chain also comprises VCM and PVC facilities with capacities of around 400,000 tons per year each, alongside additional PVC lines.

The producer added that the situation is beyond its reasonable control and directly affects its ability to meet standard supply obligations under existing contracts. The company noted that efforts are underway to restore normal operations as soon as possible.

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