Brussels, 12 May 2017
MARKET SHORTAGE OF MDI RAW MATERIALS AFFECTS OPERATIONS AT RECTICEL INSULATION
In its trading update of 26 April 2017, Recticel highlighted the challenging and unprecedented raw material price increases prevailing in the polyurethane industrydue to a tightening supply of isocyanates(TDI and MDI).
Recticel announces today that the situation has further deteriorated due to a new force majeure at Covestro and start-up issues at Huntsman, both pertaining to the production of MDI (methylene diphenyl diisocyanate).
As a consequence, MDI is no longer available in sufficient quantities. This shortage is affecting the Insulation business of Recticel, leading to a curtailment of its production outputby about 15%, and is not expected to improve before July 2017.
In 2016, the Insulation division represented 16.4% of the Group’s combined sales.
While the overall raw material situation will lead the Group’s 1H2017 combined REBITDA to remain below the 1H2016 combined REBITDA, Recticel re-iterates the full year guidance provided at the occasion of its 1Q2017 trading update to grow its full year 2017 ombined REBITDA.