January 16, 2019
Volume 3 Issue 4
Kraton Lifts Force Majeure on Tall Oils
Kraton Corp. last month lifted its force majeure declaration for its North American tall oil fatty acid and distilled tall oil product lines. The company said it completed restoration of operations for the crude tall oil refinery at its site in Panama City, Florida, which was hit by Hurricane Michael.
On Oct. 17 Kraton announced it had declared force majeure on its North America distilled tall oils as a direct result of the effects of Hurricane Michael on the Panama City facility, which was not operational at the time of the announcement.
According to the company’s web site, it sells distilled tall oils under the Sylvatal brand for use in production of metalworking fluids and oil field chemicals, as well as soaps, cleaners and alkyd resins. Sylvatal tall oils contain 10 to 40 percent rosin acids.
Houston-based Kraton said in November that it didn’t have a monetary estimate of damages resulting from Hurricane Michael, but it anticipates that insurance proceeds will cover the costs to repair the Panama City manufacturing assets, provide reimbursement for any damage to inventory and pay for any lost profits, subject to insurance policy deductibles, which the company expected will not exceed $14 million in total.