On March 21, 2011, the manufacturer of calcium carbide, the raw material from which acetylene is generated, experienced a catastrophic explosion at its facility in Louisville, KY. As a result, the supplier ceased production and declared force majeure, effective March 22.
As a result, we declared a “Force Majeure” situation whereby we had to limit Acetylene sales and/ or interrupt supply to our customers. We also implemented a 50% surcharge on all sales to cover extraordinary sourcing costs by the Acetylene producers.
We are pleased to announce that our main supplier of Acetylene has secured supply of Calcium Carbide from offshore sources and are returning to full production. We expect to be able to meet 100% of customer demand when the production back log is cleared.
Unfortunately, the offshore supply of the Calcium Carbide comes at a substantial premium, plus the transportation costs are very significant. Therefore, the Contingency Event is still in place and customer pricing has been adjusted accordingly. The good news is the new pricing is much lower than the 50% surcharge which was previously added to all sales transactions.
It is our understanding the domestic Calcium Carbide manufacturer is re-building their production facility, but it will be some months before the supply chain returns to normal. We encourage all our customers to continue to explore alternative fuel gases, such as Propane and Propylene, as a low cost high performance alternative to Acetylene fuel.
Calcium Carbide is the raw material for the manufacture of Acetylene gas. As the news announcement below states, we have lost 85% of the domestic supply of this strategic material. Over the next 30 days, the acetylene producers will be shutting down as current inventory is exhausted. This contingency may last for up to 6 months.
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We have three (3) alternate fuel gases available which are excellent alternatives to Acetylene for your welding, cutting, and heating requirements:
Propane – Traditional low cost fuel gas for cutting and heating applications.
Chem-O-Lene – A high performance cutting fuel for heavy cutting, suitable for both manual and automated equipment.
Frank Doran is the newest employee for Detroit’s Metro Welding Supply. He
has over twenty-three years of experience within the industry. Frank’s managerial
expertise and background with Specialty Gases and Quality Control initiatives
provides Metro Welding Supply with the ability to grow its business while maintaining
a close eye on operational efficiencies and excellence.
Metro
Welding Supply/Cryogenic Gases is proud to announce the recent expansion and
renovation of our Specialty Gas Lab in Detroit, Michigan. The Lab underwent
a total make-over to include more efficient and accurate filling and analytical
capabilities. These upgrades will allow us to continue offering the shortest
lead times available on specialty gas orders while maintaining our stringent
quality standards as we pursue our ISO 17025 certification.
Metro Welding Supply is pleased to announce their new website. The site was developed to be a resource for both current and potential partners and allow you to find information that is pertinent to you.
"We are really excited about the possibilities that the new site brings" said John Stoneback, Metro Welding Supply. "It really portrays the professional image that our customers have come to know and love about our service" Stoneback continued.
The site will continue to be enhanced and we will always be adding more information so be sure to check back often. If you have a need, please feel free to contact us. We would love to chat about how we can help.
