Alkyl Amines Chemicals Limited has temporarily suspended the manufacturing of Methylamines, Ethylamines, and their derivatives at its Patalganga, Kurkumbh, and Dahej sites. This action is due to the global geopolitical conflict severely disrupting international petrochemical supply chains, specifically impacting the availability of Liquefied Natural Gas (LNG) necessary for Ammonia production. Ammonia, a key raw material, is currently unobtainable, forcing the company to declare a Force Majeure event.
Impact of Global Geopolitical Events
Alkyl Amines Chemicals Limited has issued a material disclosure regarding significant operational challenges stemming from the ongoing geopolitical conflict in the Middle East. This conflict has severely disrupted international crude oil and petrochemical supply chains, leading directly to shortages in the availability of Liquefied Natural Gas (LNG).
Critical Input Shortage: Ammonia
LNG is cited as a critical input for Ammonia production. Consequently, several Ammonia manufacturers have declared Force Majeure, indicating their inability to fulfill supply obligations. This situation has directly impacted Alkyl Amines, which relies on Ammonia as a key raw material for manufacturing Methylamines, Ethylamines, and their derivatives.
Temporary Manufacturing Suspension
Due to the non-availability of Ammonia, the Company has been compelled to temporarily suspend the manufacture of the aforementioned products across its facilities located at Patalganga, Kurkumbh, and Dahej sites. This constitutes a force majeure event for these specific product lines arising from the external geopolitical situation. Importantly, the production of other products at these sites, which do not require Ammonia as an input, will continue uninterrupted.
Forward Outlook and Monitoring
The management noted that the likely financial and operational impact resulting from this ongoing Force Majeure event cannot be estimated at this point in time. The Company is actively monitoring developments, rigorously exploring alternative sourcing arrangements for Ammonia, and commits to informing the Stock Exchanges of any material updates regarding the resolution of this supply chain disruption.
Source: BSE
