# Formaldehyde: Production

Why formalin is made beside the factory that uses it

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

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** | not published in the sources reached |  |  |
| **World output** | about 23 Mt demand (2022), roughly equal to output because little is traded |  | ChemAnalyst via GII (2023) |
| **Capacity utilisation** | not published | Small plants run with resin demand; Assam Petrochemicals' 125 t/day formalin plant ran at 106% in FY2025. | The Sentinel Assam (Sep 2025) |
| **Concentration** | low; many small producers, most captive to resin makers | Top-country share not published; China leads. Firm shares not published. | ChemAnalyst via GII (2023) |
| **New capacity** | not published | Growth follows panel and resin capacity in Asia; Assam Petrochemicals plans a 200 t/day formalin unit. | The Sentinel Assam (Sep 2025) |

#### Top producing countries

- **China**: leading producer (2022); Asia Pacific 55% of demand
- **United States**: formaldehyde takes 29% of North American methanol demand, about 2.3 Mt of methanol (Argus 2024 basis)
- **Europe (Germany, Italy, Netherlands)**: not verified
- **India**: about 1.4 Mt HCHO (100% basis) a year (derived: 46% of about 3.6 Mt methanol / 1.17)
- **Russia and Turkey (panel industries)**: not verified
 ChemAnalyst via GII (2023); Argus (2025), derived; Crisil (2026), derived (indicative)

#### Largest producers: global

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **BASF** capacity not verified | Germany | not published | 2026 | [named as a major supplier by Procurement Resource (2026)](https://www.procurementresource.com/es/resource-center/formaldehyde-price-trends) |
| **Perstorp** also Formox process licensor (indicative) | Sweden | not published | 2026 | [Procurement Resource (2026)](https://www.procurementresource.com/es/resource-center/formaldehyde-price-trends) |
| **Celanese** captive for POM | US | not published | 2026 | [Procurement Resource (2026)](https://www.procurementresource.com/es/resource-center/formaldehyde-price-trends) |
| **Alder** | Italy | not published | 2026 | [Procurement Resource (2026)](https://www.procurementresource.com/es/resource-center/formaldehyde-price-trends) |
| **Nantong Jiangtian Chemical** | China | not published | 2022 | [ChemAnalyst via GII (2023)](https://gii.tw/annual/chema1267851-global-formaldehyde-market-analysis-plant-capacity.html) |
| **Shandong Yushiju Chemical** | China | not published | 2022 | [ChemAnalyst via GII (2023)](https://gii.tw/annual/chema1267851-global-formaldehyde-market-analysis-plant-capacity.html) |

#### Largest producers: India

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Assam Petrochemicals** formalin sales Rs 77.9 crore in FY2025 | India | 0.041 Mt a year of formalin (125 t/day, derived at 330 days); 200 t/day plant planned | FY2025 | [The Sentinel Assam (10 Sep 2025)](https://www.sentinelassam.com/amp/story/topheadlines/assam-apl-posts-rs-304-cr-net-loss-despite-revenue-from-new-methanol-plant) |
| **Kanoria Chemicals & Industries** capacity not verified | India | not published | 2022 | [ChemAnalyst via GII (2023)](https://gii.tw/annual/chema1267851-global-formaldehyde-market-analysis-plant-capacity.html) |
| **Balaji Formalin** capacity not verified | India | not published | 2022 | [ChemAnalyst via GII (2023)](https://gii.tw/annual/chema1267851-global-formaldehyde-market-analysis-plant-capacity.html) |
| **Simalin Chemical Industries** capacity not verified | India | not published | 2022 | [ChemAnalyst via GII (2023)](https://gii.tw/annual/chema1267851-global-formaldehyde-market-analysis-plant-capacity.html) |

India makes most of its own formaldehyde in many small plants near plywood and laminate clusters (Gujarat, Punjab, Kerala), but on imported methanol: methanol is 98% imported (Crisil), so formaldehyde costs follow Gulf methanol prices.

#### Position by region

| Region | Position |
|---|---|
| **US** | TSCA Title VI caps emissions from composite wood; formaldehyde uses 29% of North American methanol (Argus). |
| **EU** | Classified Carc 1B since 2016; furniture and wood-product emission cap of 0.062 mg/m3 from 6 August 2026. |
| **India** | Domestic production on imported methanol; panel and plywood growth drives demand. |
| **China** | Largest producer and consumer, tied to furniture exports and housing. |
| **Japan** | Strict F-star panel emission grading (indicative). |
| **Middle East** | Small resin industries; exports methanol rather than formaldehyde. |

## Other sections

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