Evonik to build hydrogen peroxide plant in China

Evonik Industries will build a new production plant for hydrogen peroxide (H2O2) in Jilin Province in northeastern China. An investment of more than one hundred million Euro in the project sees Evonik moving another step forward in its endeavor to access new sales markets for this environmentally friendly oxidant.

Scheduled to be completed by the end of 2013, the plant will boast an annual production capacity of 230,000 metric tons, thus increasing Evonik’s current overall annual capacity of around 600,000 tons for H2O2 production by nearly 40 percent. The Group believes it is the world’s second largest manufacturer of hydrogen peroxide.

Evonik will supply its H2O2 from Jilin directly to the adjacent propylene oxide plant run by Jishen Chemical Industry Co., Ltd. via a pipeline that will link the two facilities. A long-term supply agreement has already been concluded between the companies. Jishen will use innovative technology—the so-called HPPO process— to make propylene oxide from the hydrogen peroxide.

Evonik and ThyssenKrupp Uhde GmbH, a Dortmund/Germany based engineering firm, this summer entered a licensing agreement with Jishen Chemical Industry Co. Ltd. for its use of the HPPO process. Propylene oxide is mainly used in manufacturing polyurethane intermediates. The polyurethanes then go into making things like upholstery for car seats or furniture. The HPPO process was developed by Evonik in collaboration with Uhde.

“Our investment in Jilin”, explains Dr. Dahai Yu, member of the Evonik Executive Board, “is an excellent example of how we’re developing innovative technology in order to enable us to access new sales markets for hydrogen peroxide. This move is also part of our growth strategy that sees us making targeted investments in Asia and that will help us to achieve growth in that region.”

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