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Astro Packaging

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Supply Chain Disruption

Dear Valued Astro Packaging Customer, 

We write to notify you of recent developments affecting availability of essential raw materials for some of our products.

From the beginning of the pandemic, Astro Packaging has worked diligently to ensure the supply of our adhesive products. We have successfully kept our adhesive pipeline open and navigated the volatility of global raw material supply chain and logistics imbalances. Over the past six months, we have seen inflationary pressure on raw materials, adjusted accordingly, and done our best to manage those imbalances.

The chemical raw material supply imbalance has now been severely exacerbated the by recent extreme and historic cold weather on the U.S. Gulf Coast. Texas and surrounding coastal states are the source for many of the chemical raw materials used in our adhesive formulations. The recent unprecedented cold weather resulted in many major chemical plants having to shut down.

While utilities are slowly being restored, it is not clear what long-term damage has been done to these chemical facilities, and it will take several weeks, or longer, for many of these facilities to return to normal production levels.

Many of the chemical raw material suppliers have declared force majeure and reduced or ceased supply, or have notified us of ongoing raw material shortages. The full impact on the supply of raw materials remains nuclease, and we are currently assessing the situation. In addition, we are receiving notices of raw material cost increases, with more forecasted, so we are currently evaluating the impact on our pricing as well.

Due to the above extraordinary conditions currently impacting the availability of essential raw materials, we are notifying you that our ability to fill orders may be affected. We will be reaching out to you to discuss the impact on your orders and provide updates as the situation becomes clearer. We are attempting to meet the needs of all our customers.

We appreciate your patience as we work through these challenging times together. A sales associate will be reaching out to you shortly to discuss this matter and to answer any questions you may have.

Sincerely,

Debbie Dillon - Chief Operating Officer

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