Chlorine: Production
Why Europe is closing plants while Asia builds
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 92-100 Mt a year of chlorine (2024-25, indicative) | Derived: China caustic capacity 50.38 Mt at end-2025 (Mysteel) equals about 44.7 Mt chlorine; GlobalData forecast 92 Mt for 2024 made in 2020; P Plus (about 92 Mt installed capacity, 2024, unsourced) | |
| World output | about 80 Mt chlorine (2025, indicative) | Derived from Mysteel China caustic output 42.62 Mt (2025) and regional data below | |
| Capacity utilisation | about 80% globally; China about 85%; Europe 66-74% in 2024 | Europe ran at only 59-68% in 2023 after the energy shock and 66-74% in 2024 (Euro Chlor). China ran at 83-85% in late 2025. India ran at about 79% in FY2024-25. | Euro Chlor monthly production 2024; Mysteel Nov 2025; Argus Oct 2025; Alchempro 2025 |
| Concentration | China about 47%; top-3 countries about 71%; top-5 companies not published | China's industry is fragmented across many inland coal-power and coastal producers. Outside China, a few integrated vinyls groups dominate: Olin, Westlake, OxyChem, Formosa, Shin-Etsu and Inovyn. | derived from by_country |
| New capacity | China added about 900,000 dmt caustic in 2025; India about 1.55 Mt caustic by 2027; Europe closing about 849,000 dmt in 2024-2028 | OxyChem's 940,000 ECU membrane plant in Houston delayed to about January 2027; TA'ZIZ (ADNOC) EDC/VCM/PVC and caustic complex due 4Q2028; Al Gaith (Oman) to 67,000 t in 2027. Closures: Arkema Jarrie and Vencorex Pont de Claix (2024), Inovyn Rheinberg (2026), BASF Ludwigshafen and Dow Schkopau (late 2027). | Argus Chlor-Alkali Outlook Nov 2025; GlobalData 2023 |
Top producing countries
China 47% · about 37.8 Mt (42.62 Mt caustic / 1.128) United States 14% · about 11 Mt (indicative) Europe (EU-27, Norway, Switzerland, UK) 10% · about 8.0 Mt in 2024 (7.37 Mt in January-November) India 6% · about 4.5 Mt (5.05 Mt caustic / 1.128, FY2024-25) Japan 4% · about 3.3 Mt (indicative) Mysteel Nov 2025 (derived); indicative (basis: Westlake 3.0 Mt and OxyChem 3.0 Mt capacity plus Olin, Shintech, Formosa); Euro Chlor monthly production data 2024; Alchempro 2025 (derived); indicative (basis: Japan Soda Industry Association caustic output)Largest producers: global
| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| Olin describes itself as the largest chlor-alkali producer; capacity figure not checked | US | not published | 2025 | Olin 10-K |
| Westlake includes Geismar expansion; excludes closed Lake Charles diaphragm unit | US | 3.03 Mt chlorine capacity (6,670 million lb) | Feb 2026 | Westlake 10-K FY2025 |
| OxyChem (Berkshire Hathaway) Berkshire agreed to buy OxyChem for $9.7 billion in Oct 2025 | US | 3.01 Mt chlorine capacity | 2025 | Argus Chlor-Alkali and Derivatives, 3 Oct 2025 |
| Formosa Plastics Group capacity not published here | Taiwan/US | not published | 2025 | Westlake 10-K competitor list |
| Shin-Etsu (Shintech) Plaquemine, Louisiana, integrated to PVC | Japan/US | not published | 2025 | Westlake 10-K competitor list |
| INEOS Inovyn largest European producer; Rheinberg closure likely 2026 | UK/Europe | not published | 2025 | Argus Nov 2025 |
| Xinjiang Zhongtai Chemical large coal-and-carbide-based chlor-vinyl producer (indicative) | China | not published | 2025 | not published here |
Largest producers: India
| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| Grasim Industries (Aditya Birla Chemicals) largest Indian producer; about 1.4 Mt caustic (indicative) | India | not published | FY2025 | company reports |
| DCM Shriram Bharuch 2,225 TPD is India's largest single-site caustic plant | India | 1 Mt caustic capacity after 850 TPD expansion | 2024 | Indian Chemical News interview, June 2024 |
| Gujarat Alkalies and Chemicals (incl. GACL-NALCO JV) Dahej JV planned at 0.23 Mt chlorine (GlobalData 2020) | India | not published | 2025 | not published here |
| Chemplast Sanmar integrated into PVC and chloromethanes | India | not published | 2025 | not published here |
| Epigral, Lords Chloro Alkali, Kutch Chemical Industries newer entrants; Lords Chloro 0.74 Mt and Kutch 0.22 Mt planned additions | India | not published | 2023-24 | GlobalData 2023 |
India had 6.40 Mt of caustic capacity in FY2024-25 (about 5.7 Mt chlorine) and made 5.05 Mt caustic. Chlorine demand is about 4.6 Mt a year. India is self-sufficient and all cells are membrane; the constraint is finding outlets for chlorine, mainly agrochemical, pharma, chloromethane and PVC users.
Position by region
| Region | Position |
|---|---|
| US | Low-cost gas power and integration to vinyls; diaphragm plants closing ahead of the asbestos phase-out (2029/2036). OxyChem sold to Berkshire Hathaway in 2025. |
| EU | High power prices: utilisation 59-68% in 2023; closures of about 849,000 dmt planned through 2028; mercury banned since 2017. |
| India | Self-sufficient, membrane-only; chlorine is the long product and is often sold near zero or below, so caustic carries the margin. |
| China | 47% of world output, coal-heavy power; merchant liquid chlorine traded negative (minus Yn100-200/t) in Shandong in Oct 2025. |
| Japan | Mature, around 3-4 Mt; integrated into PVC and exports caustic in Asia (indicative). |
| Middle East | New integrated vinyls complexes using cheap gas power: TA'ZIZ in the UAE (2028), Sadara and others in Saudi Arabia. |