Chandra Asri declares force majeure due to conflict in Hormuz

By Calvin Purba

Petrochemical firm PT Chandra Asri Pacific Tbk (IDX: TPIA) has declared force majeure across all of its business units following military activity in the Strait of Hormuz.

Suryandi, Director of Human Resources & Corporate Affairs at TPIA, said the military conflict in the Strait of Hormuz has disrupted the distribution of raw materials, prompting the company to declare force majeure.

“In connection with the military conflict in the Strait of Hormuz area, which has affected the smooth distribution of raw materials within the supply chain, the company has issued a force majeure notice to its business partners in accordance with the applicable contractual provisions,” Suryandi told Petromindo.com on Tuesday (March 3).

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He added that, as a mitigation measure, the company will reduce its operational levels (run rates) and actively monitor developments in the Strait of Hormuz.

“We are actively monitoring the evolving conflict situation between the United States and Iran and taking anticipatory measures to ensure operational resilience across all our business units. As mitigation, we will reduce operational levels (run rates) at our plants. We are currently coordinating with customers to mitigate the impact of this situation,” Suryandi said.

However, Suryandi did not specify the extent of the operational reductions implemented by the company.

Editing by Reiner Simanjuntak