Ashland EU Fire Affects Supplies for ‘18

Specialty chemicals maker Ashland expects supplies of intermediates from a plant in Germany will end up affected into next year after production was suspended following a fire earlier this month.

In an update, the Covington, Kentucky-based company said it continues to assess the situation at a plant in Marl, Germany, where the August 10 fire resulted in the company halting production of 1.4 butanediol, tetrahydrofuran and formaldehyde.

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No one was hurt in the fire but production halted while the company investigates the cause of the blaze and extent of its damage.

The company said the initial estimates are damages will run $15 million to $20 million.

Ashland said it will be early next month, at the earliest, before production can resume and it expects production volumes to be “somewhat constrained into the first quarter of fiscal 2018.” It is working with clients to help them find supplies of the three products.