New supply stress test for auto industry
Apr 18, 2012 | 05:01 PM
| Corinna Petry
CHICAGO The North American automotive supply chain is again threatened by a shortage of a key product, and although its too soon to predict the economic consequences, the situation could result in a vehicle production slowdown.
In an echo of last year, when an earthquake and tsunami in Japan and persistent flooding in Thailand shut down suppliers of electronic components and paint chemicals, automakers now are facing a shortage of a critical material used in brake linings, fuel lines and other components.
The shortage stems from a March 31 explosion at an Evonik Industries AG chemical plant in Marl, Germany. The Essen-based company makes cyclododecatriene (CDT), which is used to produce a nylon resin called PA-12 (or Nylon 12). Evonik, which produces about half the worlds supply of PA-12, said it will take at least three months for the plant to return to normal production. ....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.