44 Pct of Japan Firms Say Naphtha Woes Already Hitting Biz

(The fifth paragraph should have read, “…answers…,” instead of as sent. A substitute story follows.) 44 Pct of Japan Firms Say Naphtha Woes Already Hitting Biz Tokyo, April 28 (Jiji Press)–Disruptions to naphtha supply tied to Middle East tensions are already affecting 44.1 pct of 102 surveyed Japanese food makers, retailers and other firms, an industry group survey report has shown. These firms cited difficulty in procuring packaging materials, among other factors, according to the survey released Monday by the Federation of Consumer Goods Industries and Consumer’s Associations, known as Seidanren. In the survey, 31.4 pct said the impact of supply disruptions may emerge within the next three months if current conditions persist, and 14.7 pct said they may experience the impact in three months to one year. A combined 25.4 pct said they expect their operations to be seriously or extremely seriously affected. As countermeasures, with multiple answers allowed, raising product prices was cited by 72.5 pct, restricting the supply of some items by 47.1 pct and revising package volumes or specifications by 42.2 pct. As reasons why naphtha-derived raw materials are difficult to substitute, 57.8 pct cited insufficient supplies of alternative materials or the lack of viable alternatives. “Problems directly affecting people’s daily lives are surfacing,” the group said in the report, urging the Japanese government to secure a stable supply of naphtha and provide information on supply conditions. END [Copyright The Jiji Press, Ltd.]