Material Insights · Understanding the Material World

Ethylene oxide: Production

Why plants live inside giant cracker complexes

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.
MeasureFigureDetailSource
World capacityabout 40 Mt/yr globally (indicative)indicative (basis: Argus 2025 regional tables plus China estimates)
World outputabout 34 Mt (2025, indicative)derived
Capacity utilisationChina average EO operating rate 69% in early October 2025North America had about 0.9 Mt of capacity lost or idle (8.56 Mt nameplate, 7.67 Mt effective) in 2025.Argus EO and Derivatives, 1 Oct 2025
Concentrationtop 3 (China, US, Saudi Arabia) about 65% of capacity (indicative)SABIC is the largest single producer; Dow, Shell, Sinopec, Formosa, Lotte, Nan Ya and Reliance are major (indicative).Argus 2025; indicative
New capacitymainly China; e.g. PetroChina Jilin 300 kt/yr EO (2025), Yulong Petrochemical 1 Mt/yr MEG (Oct 2025)Most new EO is built inside integrated EO/EG units in China. North America and Europe are shrinking: Clariant is closing one Gendorf unit by end-2025.Argus EO and Derivatives, Oct 2025

Top producing countries

China 35% · about 14 Mt/yr (indicative) United States 17% · 6.93 Mt/yr nameplate (6.13 Mt effective) Saudi Arabia 14% · 5.71 Mt/yr nameplate (5.61 Mt effective) Europe 9% · 3.43 Mt/yr nameplate (3.12 Mt effective) Canada 3% · 1.23 Mt/yr nameplate Iran 3% · 1.16 Mt/yr effective indicative; Argus estimates, 2025

Largest producers: global

CompanyCountryVolumeYearSource
SABIC largest EO/EG producer (indicative) Saudi Arabianot published 2025SABIC
Dow MEGlobal and US Gulf assets; Meteor process licensor USnot published 2025Dow 10-K
Shell OMEGA process; US units in maintenance Oct 2025 (Argus) UK/Netherlandsnot published 2025Shell
Sinopec not published Chinanot published 2025Sinopec
PetroChina start-up by October 2025 China0.3 Mt/yr new EO unit (Jilin) 2025Argus Oct 2025
Formosa Plastics / Nan Ya not published Taiwan/USnot published 2025company
Clariant one unit closing by end-2025 Switzerland0.3 Mt/yr EO (Gendorf, two units) 2025Argus Oct 2025

Largest producers: India

CompanyCountryVolumeYearSource
Reliance Industries largest; mostly converted to MEG (not published) Indianot published 2025Reliance
Indian Oil Corporation Panipat MEG complex (not published) Indianot published 2025IOCL
India Glycols bio-ethanol-based EO and glycols at Kashipur; also ethoxylates Indianot published 2025India Glycols
Clariant Chemicals India / others ethoxylation users rather than EO makers (indicative) Indianot published 2025company

India's EO is made mainly by Reliance and IOCL for glycols, and by India Glycols from bio-ethanol. McKinsey estimated about 2 Mt/yr of announced Indian additions were mainly in EO and EG. Purified EO is rarely imported because of the hazard; India instead imports ethoxylates and glycols.

Position by region

RegionPosition
USCheap ethane-based ethylene; US EO sterilisation faces new EPA emission limits (2024).
EUHigh-cost and shrinking; purified EO contract €1,294/t in Oct 2025 (Argus).
IndiaEO built into glycol complexes; ethoxylate makers depend on a few suppliers.
ChinaLargest and growing; EO margins slightly negative for non-integrated producers in Oct 2025 (Argus).
JapanMature, small; Nippon Shokubai and Mitsubishi Chemical make EO derivatives.
Middle EastSaudi Arabia has about 5.7 Mt/yr of capacity, mostly for glycol exports, exposed to Hormuz shipping risk in 2026.