Solvay to cut hydrogen peroxide production capacity in Western Europe

Solvay to cut hydrogen peroxide production capacity in Western Europe

Company has realigned its strategy due to COVID-19 to cut H2O2 production capacity in Western Europe and instead add capacity in onsite satellite plants.

  • By Pravin Prashant | September 21, 2020
Solvay announced today the launch of its Peroxides for the Future (“P4F”) program, a multi-year plan to adapt its industrial footprint and to make products available where customers need it most.
Under the P4F program, in the current market context driven by COVID-19, Solvay will curtail its H2O2 production capacity in Western Europe by 70 kt as of January 1, 2021. 
The EMEA hydrogen peroxide market has been developing at an accelerated pace during the COVID-19 crisis. While the overall market remains strong, market segments and sub-regions reacted differently to the crisis. Our traditional segments, like printing and writing, are accelerating their decline, whereas other applications’ growth has been boosted. As a result, the H2O2 demand footprint is changing rapidly, with significant additional volume of H2O2 needed in new geographical areas and encouraging signs of a healthy global peroxides demand for the years ahead.
These market changes require Solvay to adapt its industrial footprint by getting production centers closer to the new pockets of demand, and increasing the efficiency of its supply chain by leveraging digital.
P4F will achieve this by reshuffling Solvay's footprint to make capacity available in new areas using Solvay’s proprietary technologies (in particular MyH2O2 – mini satellite plants on customers’ sites) to provide best-in-class security of supply to our customers, driving new low emission industrial set-ups and circular economies.
"This decision illustrates our ability to adapt to unforeseen market changes such as the ones brought by this unprecedented sanitary crisis, while guaranteeing unparalleled ability to serve both our current and future customers across EMEA, thanks to our wide spread production network," said Marco Giannuzzi, Solvay Peroxides EMEA General Manager.

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