High Oil and Gas Prices and Plastic Random Packing

KemFlo utilizes various types of high performance plastic resins in the manufacturing of our plastic random packing product line which includes the Tri-Pack, Pall Ring, Saddles and KemFlake. These high performance plastic resins are created by hydrocarbons which come from the crude oil refining process. As with many products high oil prices affect plastic random tower packing in a number of challenging ways from manufacturing to logistics. Raw material cost of plastics such as polypropylene, polyethylene, Kynar and Tefzel have a direct correlation with the cost of oil so the higher the cost of oil per barrel the higher the cost of all plastic products such as plastic random packing. Plastic raw materials cost are quick to rise with the cost of oil but much slower to react as oil prices decrease. Therefore a spike in oil and gas prices can have long term affects on industry.

Planning ahead is key to minimizing the affects of an oil and gas price spike in the market. One of KemFlo’s strategies regarding this issue is to secure significant amounts of raw material as well as increase inventory levels at both distribution locations. Another major challenge that high oil and gas prices affect are logistical and transportation cost. High gas prices increase the cost to transport raw material to our manufacturing facility and increases the transportation cost to get plastic tower packing to our customers. KemFlo’s logistics team works closely with our network of transportation companies to find our customers the best rates possible.

Logistics and coordinating shipping can be very time consuming for our customers which is why KemFlo offers shipping assistance for our plastic random packing product line. We have also addressed rising oil and gas cost by adding an additional distribution center in Houston, Texas. The new distribution center will carry a variety of products including the Tri-Pack, Pall Ring, Saddle and KemFlake. All styles of plastic random packing carried at our Houston distribution center will be available in multiple sizes and resins. Our Houston, Texas facility will offer many advantages to our customers including more competitive logistic options especially to our customers in the Southern region of America and we will also have better access to raw material supplies due to the abundance of petrochemical facilities located in the Gulf Coast area. Having distribution centers that service both the Northern and Southern regions of the United States helps to keep our customer’s shipping cost and transit times down. Providing substantial access to our tower packing product line is an important measure in ensuring that our customer receive product in the most efficient and cost effective manner possible. The price of oil and gas in one of many long term challenges that our industry will face so it is extremely important for KemFlo to continuously evaluate how we do business and how we can better service our customer.

For more information regarding KemFlo’s plastic random packing product line including the Tri-Pack, Pall Ring, Saddle and KemFlake please visit our website at www.kempac-packing.com or contact us by phone.