Babies Beware: Diapers May Get Harder to Find

by Nate Wooley | October 1, 2012 9:34 am

The world’s supply of disposable diapers is tightening after an explosion at a key plant this weekend. The accident occurred at the Nippon Shokubai plant in Himeji, Japan, Saturday afternoon. While the fire was put out Saturday night, the impact may last quite a while.

Nippon Shokubai manufactures acrylic acid, which is used in the creation of a resin called SAP and is a component of disposable diapers. With the plant offline for an unknown amount of time and other plants operating and full capacity, a shortage is likely, reports Reuters[1].

The full impact will likely be felt at the checkout counter as diaper prices rise. The shortage of SAP resin will force manufacturers of diapers, such as Proctor & Gamble (NYSE:PG[2]) and Kimberly Clark (NYSE:KMB[3]), to hike prices in the face of increased cost.

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