Kingspan Issues Warning to Customers to Expect Supply Shortages and Longer Waits

6 July 2021

kingspan

INSULATION MANUFACTURER, Kingspan Insulated Panels, has issued a warning to its customers to expect more insulation supply shortages and longer delivery times on existing orders.

The company issued its warning today at lunchtime in the form of an email from Phil Smith, its managing director.

Kingspan says that one of its key chemical suppliers has claimed force majeure following a breakdown at one of their factories.

Force Majeure

Force Majeure is the term often used when unforeseen events prevent the completion of a contract. It usually covers events beyond the control of parties to a contract, such as natural disasters. In this case, it seems the company is claiming the global impact on supply chains of the pandemic as a force majeure event.

It is significant that force majeure has been claimed as it is often suspends the obligations of a contract and can be the trigger or gateway to claiming on contract insurance for any losses.

Kingspan Insulated Panels is one of only two major insulated panel suppliers to the UK market. Its interrupted supply is likely to have a significant impact on the UK commercial and industrial construction industry.

Kingspan Insulated Panels supply warning email to its customers

 

Important Customer Notice From Kingspan Insulated Panels

RE: Force Majeure

Over recent weeks and months we have been advising of the challenges being faced with supply of raw materials and the rising cost of these materials. These challenges have had significant impact on the price of our finished products and have caused us to significantly extend our lead times on our range of Insulated panels.

We must now unfortunately advise that one of our key chemical suppliers has had a significant breakdown at one of their production facilities and as a result have claimed Force Majeure.

We are in urgent dialogue with them to understand the extent of the issue and the length of time this issue may exist, as well as what this means for supply of product to us and any subsequent impact on costs. Concurrently we are looking to see if other companies within our established supply chain can cover some of the shortfall we are expecting; however, with all material in tight supply it is unlikely that any other suppliers will be in a position to cover the full potential deficit in material volumes.

As a consequence of this disruption to our supply chain, we must advise that we will not be able to supply all current orders for Insulated panel products on the dates previously confirmed. We will continue to operate and will be able to manufacture panels, albeit at reduced levels. We will do everything we can to mitigate the delays to your projects, and as soon as we have clarity on availability of materials we will update you with the revised delivery dates we can offer. Our Customer Services team will be in contact with you to review your impacted orders.

We apologise for this latest situation which is beyond our direct control and assure you of our best endeavours to mitigate any delays. We will communicate again in the coming days once we have full details of the likely impacts.

Yours Sincerely

Phil Smith
Managing Director

 

 

>>Read more about Kingspan in the news

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