Raw materials situation curbing boom 

Back in March we had to warn our customers that the situation on the global procurement markets was remaining strained. Ensinger was able to secure a relatively high level of supply with glass fibres and polyamide (PA66) for the production of insulbar. However, levels of incoming raw materials are not secured to an extent that enables us to respond quickly or in full to the hugely increased demand.

Several major suppliers have declared force majeure, and their range of products is greatly reduced. Added to the bottlenecks on the production side are also the transport delays, e.g. as a result of the partial closure of the major Chinese port of Ningbo-Zhoushan in August. The prices of material, energy and cargo rates have reached great heights and continue to increase – limited supply meets rapidly increasing demand.

Production quantity to be increased as fast as possible

“We introduced measures early on to mitigate the situation”, says Dr. Oliver Frey, one of the three Managing Directors of Ensinger and Head of the insulbar Division. “For example, we have increased our order quantities, built up stocks, and stepped up monitoring. In addition, with the aid of a Task Force we are counteracting material bottlenecks as best we can, making use of opportunities on the spot markets and approving alternative suppliers and products. Over and above this, Ensinger has invested in the expansion of its production capacities.”

“We assume that demand will remain high for a while, and really want to be able to supply our customers as quickly as possible”, explains Dr. Oliver Frey. “However, the third quarter could be tough again. We are hoping that the situation will stabilise or improve from Q1/2022 onwards, and have laid the foundations for rapidly increasing production quantities as soon as raw materials supplies allow. Required delivery quantities are being agreed with our customers in order to enable the optimum supply of insulbar permitted by the raw materials situation.”