GERMANY – According to BASF, the production of key ingredients used in manufacturing vitamins and carotenoids will likely not resume until at least January 2025.
The German chemical giant, a leading producer of these essential nutrients for human and animal nutrition, declared force majeure on August 7th following an explosion and fire at its Ludwigshafen facility in late July 2024.
The incident caused significant damage to the plant responsible for producing Vitamin A, Vitamin E, and carotenoid products, as well as some aroma ingredients. Operations at the facility have been halted as repair efforts are underway.
In its latest update, BASF provided a tentative timeline for recovery, stating that aroma ingredients might be the first to resume production. Some products could potentially be available by October 2024 and the remainder by November 2024.
However, the production of Vitamin A, Vitamin E, and carotenoid products is expected to restart in January 2025 at the earliest.
BASF cautioned that these estimates could change as the full extent of the damage and the progress of repairs are still being assessed.
Even once production resumes, the company noted that it would take several months to rebuild global, regional, and local inventory levels to restore normal business operations.
Vitamin E, a fat-soluble vitamin crucial for animal growth, immune function, and the prevention of muscular dystrophy in young calves, plays a vital role in nerve, muscle, and sensory control.
Similarly, Vitamin A is necessary for proper bone formation, growth, energy metabolism, and skin and hoof tissue maintenance.
It is also essential for vision, particularly in adapting from light to dark. The disruption in their production is expected to significantly impact the nutrition industry.
Since the incident, the market has already experienced volatility, with Vitamins A and E prices likely to fluctuate significantly.
This situation mirrors a previous event in October 2017, when a fire at BASF’s northern Citral facilities in Ludwigshafen led to a plant shutdown and a force majeure declaration for Citral and Isoprenol-based aroma products.
That incident and supply challenges in China caused prices of Vitamins A and E to skyrocket, spurring market innovation for alternative feed sources.
After that incident, BASF took close to a year to list its force majeure and resume production.
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