25th March 2021

Allocation of LeesonBound BBA UVR

As you will no doubt be aware there are currently significant supply disruptions in the raw material market for resin bound products.

This issue is particularly affecting the supply of UV stable resins, with 3 of the major base raw material producers declaring Force Majeure for reasons of fire and the recent snow disruption in Texas. The upstream raw materials are made almost exclusively in Texas, and as such, this will affect all of the suppliers of the raw materials for the Part B component of the system.

These disruptions are likely to continue for the next 3-4 months, the exact timing is not yet clear in what is a very dynamic situation, but we hope that from June there will be some improvement.

There has been commentary of repeated Force Majeures on these UV raw materials since 2017. That is not correct, MDI (non UV) was affected in 2017. The UV has not been meaningfully disrupted until this year.

Leeson Polyurethanes is the market leader in resin bound surfacing, and as such we have long standing agreements with our key suppliers. This means that Leeson has secured sufficient materials until the end of May, based on the historic volumes supplied to our customers in 2019 and 2020 over that period.

We can therefore reassure our existing customers of sufficient historic ongoing supply i.e., on an allocation basis, but that allocation matched to your historic purchases with Leeson Polyurethanes, thereby supporting you as best possible within the constraints we have placed upon us.

There are likely to be increases based on the increased prices we are having to pay to secure materials, but as ever, we will mitigate those increases as much as practical to you our customer.

If you require further information, please contact your Sales Manager, who is best placed to assist you.

We thank you for your support and understanding, and together we will weather this issue.