This is a communication received by an NDT company concerning the shortage of Ir 192 sources for RT.
There are two other factors that enter this equation. There is an increase in the medical use of Ir 192 along with the increase in well logging activities.
April 14, 2008
Dear Customer,
For the past several months our industry has experienced extended lead-times for the delivery of Ir-192. I would like to take a few minutes of your time to provide you with the latest information on the situation and the steps QSA Global, Inc. is taking to resolve the matter as soon as possible.
The Problem
At the end of December 2007, one of the three reactors we use for irradiating Ir-192 discs used to manufacture SENTINELTM Sources experienced an unexpected shutdown due to regulatory issues. This had an immediate impact on Ir-192 shipments. This reactor did restart in early
March, but was forced to shut down two weeks later due to technical issues. No certain restart date has been announced thus far.
This shutdown comes at a time when the demand for Ir-192 by the NDT Service Industry is at an all time high. Because of this unprecedented situation that we are currently encountering, it is virtually impossible to prevent this shortage from impacting all of our customers.
QSA Global, Inc. Action Steps
QSA has acted aggressively to increase supply and long-term production capacity. In January, we initiated the following steps:
• QSA immediately placed as much material as possible in the two remaining reactors.
• QSA immediately began to secure irradiation supply from a fourth reactor. The first
shipment from this reactor recently arrived at our facility in Burlington, MA. We
are increasing capacity as quickly as possible from this fourth service supplier.
• On a worldwide basis, we have made and will continue to make every possible attempt to purchase any additional Ir-192 material or irradiation capacity available.
Beyond short term solutions, QSA Global, Inc. is in the process of qualifying additional irradiation service providers to provide further depth in our raw material supply chain.
Current Status
• All orders for Ir-192 sources currently in place with QSA Global, Inc. will be satisfied by our Baton Rouge Customer Service Team. However, Ir-192 supply will remain tight through June, and we will have limited capacity to take on significant additional orders until the end of July.
• There are a number of factors that may improve the current situation, but we think it is prudent to plan for this worst case scenario.
You are a valued customer and we promise to provide you regular updates as we work to resolve this shortage as quickly as possible. We are confident that the actions that we are taking will once again provide QSA Global, Inc. with an absolutely dependable supply of raw material and your company with an absolutely dependable supply of SENTINELTM Sources.
We regret the difficulty our extended delivery schedules have caused you and apologize for the situation. Thank you for your patience during this period and should you have any questions or need additional information please feel free to contact me.
