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Solvay to cut hydrogen peroxide capacity in Europe under realignment

September 22, 2020
Chemical Value Chain

Solvay has launched its Peroxides for the Future (P4F) program, a multi-year plan to adapt its peroxides industrial footprint in EMEA and make product available where customers need it most.

In the current market context driven by COVID-19, Solvay says it will “curtail” its annual hydrogen peroxide (H2O2) production capacity in Western Europe by 70,000 metric tons as of 1 January 2021, under the P4F program. Solvay has not detailed its current overall capacity, but says it operates 10 H2O2 plants in EMEA at sites including Jemeppe-sur-Sambre, Belgium; Bernburg, Germany; and Voikkaa, Finland.

According to Solvay, the H2O2 demand footprint is changing rapidly, with significant additional volume of H2O2 needed in new geographical areas and signs of healthy worldwide peroxides demand for the years ahead. This is mainly because the EMEA H2O2 market has been developing at an accelerated pace during the COVID-19 crisis, although traditional segments such as printing and writing are accelerating their decline, whereas growth of other applications has been boosted, it says. While the overall market remains strong, market segments and sub-regions reacted differently to the crisis, Solvay says.

Solvay’s P4F program will enable the company to establish production centers closer to the new pockets of demand and increase the efficiency of its supply chain, to adapt its industrial footprint, the company says. It will do so by reshuffling its footprint to make capacity available in new areas using proprietary Solvay technologies, such as myH2O2 mini satellite plants on customers’ sites, to provide security of supply. The company developed myH2O2 to serve large customers requiring secure, on-site production in remote areas.

“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 widespread production network,” says Marco Giannuzzi, general manager/EMEA at the Solvay Peroxides business.

By: Sotirios Frantzanas

Source: Chemical Week

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