Evonik and its Chinese partner Fuhua have officially commenced commercial operations at a new large-scale hydrogen peroxide (H2O2) manufacturing facility in Leshan, Sichuan Province, China. With an annual production capacity of 200 kilotons, the plant ranks among the largest industrial-grade hydrogen peroxide facilities in the region and is expected to significantly strengthen domestic supply. Commercial production began on June 18, 2026, and the plant reached on-specification output within just a few days, demonstrating a smooth and efficient startup.
The facility is designed to serve two primary purposes. It will supply industrial-grade hydrogen peroxide to customers across the Chinese merchant market while also providing feedstock to the Evonik Fuhua New Materials joint venture. At the joint venture, the hydrogen peroxide will undergo further purification to manufacture specialty grades required for high-value applications, including electronics manufacturing and food safety solutions.
The project progressed rapidly, reaching completion only two and a half years after Evonik and Fuhua signed their licensing agreement in November 2023. As part of the collaboration, Evonik provided its proprietary hydrogen peroxide production technology along with essential process equipment, catalysts, and the working solution required for plant operations. The company also deployed technical specialists from China, Germany, and the United States to support engineering, construction, commissioning, and startup activities, ensuring the facility met operational targets within the planned schedule.
Michael Träxler, Head of Evonik’s Active Oxygens business line, highlighted that the successful commissioning reflects the company’s capability to assist customers throughout every stage of a project, from licensing and engineering to commissioning and commercial production. He noted that completing such a large-scale facility on time and within budget demonstrates the strength of the partnership between Evonik and Fuhua.
Fuhua Chairman Zhang Hua described the project as a major milestone for the company and emphasized that the collaboration successfully combines Fuhua’s strong regional market presence with Evonik’s advanced technology and operational expertise. According to Zhang, the partnership is well positioned to meet China's rising demand for hydrogen peroxide while creating opportunities for future expansion.
The startup comes at a time when demand for high-purity hydrogen peroxide continues to grow across sectors such as semiconductors, electronics, food processing, and specialty chemicals. By integrating large-scale industrial production with downstream purification capabilities, the project enhances supply chain reliability and supports the increasing need for premium hydrogen peroxide grades in China. The investment also reinforces Evonik’s strategy of expanding its technology licensing business while strengthening its footprint in one of the world's fastest-growing specialty chemical markets.
Impact on Product and Chemanalyst Chemical Prices
The commissioning of a 200-kiloton hydrogen peroxide plant is expected to improve product availability across China, reducing supply constraints for industrial-grade H2O2 while supporting the production of specialty grades for electronics and food applications. Increased domestic output is likely to strengthen supply security and reduce dependence on imports. For chemical commodities tracked by ChemAnalyst, hydrogen peroxide prices may experience downward pressure in the medium term due to improved supply and greater market competition. Downstream industries such as pulp and paper, textiles, electronics, mining, and water treatment could benefit from stable or lower feedstock costs, while specialty-grade hydrogen peroxide markets may remain comparatively firm due to higher purification requirements.
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