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View all search resultsChandra Asri declares force majeure amid Strait of Hormuz disruption
The petrochemical company will reduce operational run rates at its plants as it monitors developments in the conflict, predominantly involving Iran, Israel and the United States.
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A general view of the Chandra Asri head office in Palmerah, West Jakarta, in an undated photo. (Chandra Asri/-)
P
T Chandra Asri Pacific has declared force majeure after the United States-Israel war with Iran disrupted the flow of feedstock shipments through the Strait of Hormuz, a critical global energy choke point.
“Due to the military conflict in the Strait of Hormuz area in the Middle East, which has affected the smooth distribution of raw materials within the supply chain, the Company has issued a force majeure notification to its business partners in accordance with the applicable contractual provisions,” said the company’s human resources and corporate affairs director, Suryandi, in a statement on Tuesday.
Suryandi described the notification as a measured administrative step taken after a comprehensive internal assessment of potential risks to the company’s ability to fulfill obligations to customers.
He added that the move also reflected a commitment to transparency vis-à-vis stakeholders amid heightened geopolitical uncertainty.
The petrochemical company said it would continue to closely monitor developments in the conflict, predominantly involving Iran, Israel and the United States.
“As mitigation, we will reduce the operational run rates at our plants. We are currently coordinating with customers to mitigate the impact of this situation,” Suryandi added.
Chandra Asri noted that the duration of the force majeure remained uncertain, given the fluid situation in the region.
