# Caustic soda: Production

China's capacity race and India's quiet build-out

Source page: https://www.materialinsights.org/chemicals/caustic_soda/production/

China's capacity race and India's quiet build-out What this tab covers Who makes it and how much: world capacity and output, utilisation, the top producing countries and companies globally and in India, concentration, new capacity coming, and each region's position.

| Measure | Figure | Detail | Source |
|---|---|---|---|
| **World capacity** | about 105-110 Mt a year (2025, indicative); China 50.38 Mt at end-2025 |  | Mysteel Nov 2025; world total derived (indicative, basis: China about 46% of capacity) |
| **World output** | about 90 Mt (2025, indicative); China 42.62 Mt; India 5.05 Mt (FY2024-25) |  | Mysteel Nov 2025; Alchempro 2025 |
| **Capacity utilisation** | about 80-85% | China averaged about 85% in 2025 and 83% in late September 2025; India about 79% in FY2024-25; Europe 66-74% in 2024 (chlorine basis). | Mysteel Nov 2025; Argus Oct 2025; Alchempro 2025; Euro Chlor 2024 |
| **Concentration** | China 47%; top-3 countries about 71% | Outside China, OxyChem (3.08 Mt), Westlake (3.41 Mt), Olin, Formosa and Shin-Etsu lead. | derived; Argus Oct 2025; Westlake 10-K FY2025 |
| **New capacity** | India about 1.55 Mt by 2027; China 900,000 dmt started in 2025; US OxyChem 940,000 ECU (2027); Europe minus 849,000 dmt by 2028 | Indian projects: Lords Chloro Alwar 0.74 Mt, Shriram Alkali Bharuch 0.23 Mt, Kutch Chemical Gandhidham 0.22 Mt; TA'ZIZ UAE complex 4Q2028; Al Gaith Oman 2Q2027. | GlobalData 2023; Argus Chlor-Alkali Outlook Nov 2025 |

#### Top producing countries
 China 47% · 42.62 Mt (2025) United States 14% · about 12.5 Mt (indicative) Europe (EU-27, Norway, Switzerland, UK) 10% · about 9.0 Mt (2024) India 6% · 5.05 Mt (FY2024-25) Japan 4% · about 3.7 Mt (indicative) Mysteel Nov 2025; indicative (basis: chlorine about 11 Mt x 1.13); derived from Euro Chlor chlorine output of about 8.0 Mt (7.37 Mt Jan-Nov 2024) x 1.128; Alchempro 2025; indicative (basis: Japan Soda Industry Association)

#### Largest producers: global

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Olin** describes itself as the largest chlor-alkali producer; figure not checked | US | not published | 2025 | [Olin 10-K](https://www.olin.com) |
| **Westlake** | US | 3.41 Mt caustic capacity (7,510 million lb) | Feb 2026 | [Westlake 10-K FY2025](https://www.sec.gov/Archives/edgar/data/1262823/000126282326000016/wlk-20251231.htm) |
| **OxyChem (Berkshire Hathaway)** Houston 940,000 ECU membrane plant due about Jan 2027 | US | 3.08 Mt caustic capacity (dmt) | 2025 | [Argus Chlor-Alkali and Derivatives, 3 Oct 2025](https://view.argusmedia.com/rs/584-BUW-606/images/CHE-Sample-Report-Argus%20Chlor-Alkali%20and%20Derivatives%20%282025-10-03%29.pdf?version=0) |
| **Formosa Plastics Group** not published here | Taiwan/US | not published | 2025 | Westlake 10-K competitor list |
| **Shin-Etsu (Shintech)** not published here | Japan/US | not published | 2025 | Westlake 10-K competitor list |
| **INEOS Inovyn** largest European producer | UK/Europe | not published | 2025 | Argus Nov 2025 |

#### Largest producers: India

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Grasim Industries (Aditya Birla Chemicals)** largest Indian producer; about 1.4 Mt (indicative) | India | not published | FY2025 | [company reports](https://www.grasim.com) |
| **DCM Shriram** Bharuch 2,225 TPD plus Kota 550 TPD, then 850 TPD expansion | India | 1 Mt caustic capacity | 2024 | [Indian Chemical News, June 2024](https://www.indianchemicalnews.com/interviews/invested-over-rs-3000-crore-in-last-24-30-months-sabaleel-nandy-executive-director-ceo-dcm-shriram-360) |
| **Gujarat Alkalies and Chemicals** Vadodara and Dahej, plus GACL-NALCO JV | India | not published | 2025 | not published here |
| **Lords Chloro Alkali** planned figure as reported | India | 0.74 Mt planned addition (Alwar) | 2023 (planned) | [GlobalData 2023](https://www.globaldata.com/media/oil-gas/india-dominate-caustic-soda-capacity-additions-asia-2027-forecasts-globaldata/) |
| **Tamilnadu Petroproducts** 250 TPD x 365 = about 0.09 Mt | India | 0.09 Mt caustic capacity (expanding 150 to 250 TPD) | FY2025 | [TPL Directors' Report FY2024-25](https://www.arihantcapital.com/company-information/directors-report/848) |

India's capacity rose from 4.4 Mt (FY2019) to 6.40 Mt (FY2024-25); output was 5.05 Mt. Imports are negligible and fell 33% in FY2025 while exports rose 25%. India is now a small net exporter, but Asian producers aim to win share in India (Argus Nov 2025).

#### Position by region

| Region | Position |
|---|---|
| **US** | Largest exporter; 2026 forecast as a record export year, with Latin America and Brazil absorbing more. Dow's Freeport PO closure cuts domestic demand by about 500,000 dmt in 2026. |
| **EU** | Importer at the margin; possible anti-dumping duties on US caustic (Argus Nov 2025). NW Europe contract about EUR 580-720/dmt in Q3 2025. |
| **India** | Self-sufficient with 6.4 Mt capacity; domestic price Rs 35,000-36,000/dmt (about $399) in Oct 2025, close to import parity. |
| **China** | 47% of output; alumina in Shanxi and Guangxi is a major outlet; exports solid flake. |
| **Japan** | Steady exporter in NE Asia (indicative). |
| **Middle East** | Growing exporter; regional demand rising will shrink exports outside the region (Argus). |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/caustic_soda/index.md)
- [Overview](https://www.materialinsights.org/chemicals/caustic_soda/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/caustic_soda/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/caustic_soda/routes/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/caustic_soda/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/caustic_soda/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/caustic_soda/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/caustic_soda/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/caustic_soda/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/caustic_soda/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/caustic_soda/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/caustic_soda/links/index.md)