International. Ashland has reported the impact on its operations as a result of a fire at its manufacturing plant in Marl, Germany, which led to the closure of production operations on August 10 and the subsequent declaration of force majeure in Europe on 1,4 butanediol (BDO), tetrahydrofuran (THF) and formaldehyde.
Based on the initial results of the investigation, the company estimates that production will be suspended until the end of September at the earliest, and volume is expected to remain somewhat limited in the first quarter of fiscal 2018.
Initial estimates of the loss associated with the incident, which could change as new information becomes available, range from $15 million to $20 million, of which only several million will be recorded in Ashland's September fiscal quarter.
This range includes the loss of profitability associated with any loss of sales resulting from the unavailability of products during the quarter.
Ashland explained that it is working with affected customers to minimize the impact to their respective businesses, and will continue to provide updates on supply capacity.
