International. Huntsman Corp.'s titanium dioxide (TiO2) manufacturing plant in Pori, Finland, suffered a fire on January 30, 2017, halting production at the site until repairs can be made.
The Finnish plant accounts for 15% of Huntsman's global TiO2 capacity and produces much of Huntsman's graphic grade pigment. The graphic arts market has specific requirements for white pigments produced in Pori, in terms of brightness, abrasiveness and other factors. The impact of the fire on the supply chain in the ink manufacturing sector has been declared force majeure by major distributors, putting severe and immediate pressure on entry costs. Pigment suppliers have already announced double-digit price increases as a direct consequence of market shortages. Huntsman pledged to repair the site as soon as possible, but a severe shortage in the supply of graphic-grade pigments can be expected for all of 2017.
The industry is working diligently and quickly to find alternative products and qualities, with China offering possible relief; however, the Chinese government has recently implemented mandatory production cuts and stops when pollution levels reach a trigger point, in an effort to help improve air quality. This has meant that many production days can be lost per month, without financial compensation. Several TiO2 producers in China have been affected by this mandate, which only exacerbates the current supply constraint.
