Update on Effects of Hurricane Harvey
Our thoughts continue to be with those in the Gulf Coast area who’ve experienced devastation from hurricane Harvey. As you know, recovery and reconstruction efforts will last several months, possibly even years, as businesses, homes, and lives are being rebuilt.
SEKISUI SPI continues to monitor the recovery through industry resources and personal contacts with our suppliers in the affected area. Fortunately, many petrochemical industry plants sustained only minor damage and many are working hard to start up as soon as possible. Depending on the type of facility, starting up can take several days or even weeks.
Many industries, including plastics, are anticipating a rise in raw material prices because of increases in freight costs and other storm-related expenses. SEKISUI SPI is committed to mitigating or absorbing any short-term price increases on raw materials used to manufacture KYDEX® and ALLEN® Thermoplastics. However, we will not understand the longer-term effects on pricing for several weeks, until industries in the region resume production and raw material shipments.
Based on current information, we do not anticipate significant material shortages. SEKISUI SPI continues to operate at full capacity and we are producing to our regular production schedule.
As you know, Florida and several southeastern states are bracing for Hurricane Irma, and the people of the Gulf Coast continue to be in need. Visit http://redcross.org, call 1-800-RED CROSS, or text HARVEY to 90999 to make a donation.
We will continue to keep you updated as we learn more.
Ronn Cort | COO and President