Government-owned chemical manufacturer Hindustan Organic Chemicals Limited (HOCL) has announced the temporary shutdown of its hydrogen peroxide plant at Ambalamugal, Kochi, citing a sharp rise in raw material costs and weak market demand. The shutdown came into effect on 3 June 2026, according to a company statement.
HOCL stated that the decision was taken after evaluating the increasing cost of production and the declining demand for hydrogen peroxide in the market. Company officials indicated that continuing operations under the current conditions had become commercially challenging. The company will closely monitor market developments before deciding on the reopening of the facility.
The affected unit is located at HOCL’s Kochi manufacturing complex, one of the company’s major production centers. The hydrogen peroxide plant, commissioned in 1997, has an installed production capacity of approximately 5,225 tonnes per annum and serves various industries including paper, textiles, chemicals, and water treatment.
The latest shutdown follows a series of operational challenges faced by HOCL in recent months. Earlier this year, the company experienced disruptions related to LPG supply issues affecting its phenol and cumene operations. While those facilities later resumed production, the current hydrogen peroxide shutdown reflects the continued pressure on the chemical manufacturing sector from rising input costs and changing market conditions.
HOCL has clarified that the shutdown is temporary and that management will continue assessing demand trends, raw material prices, and overall market conditions. The company has not announced a specific timeline for restarting operations and stated that the reopening date will be communicated separately at a later stage.
Industry observers note that the move highlights the challenges currently faced by chemical manufacturers, including fluctuating energy costs, supply-chain uncertainties, and softer industrial demand. The temporary closure is expected to have a limited impact on local employment as the company continues monitoring the situation and planning for eventual resumption of production.
The development is being closely watched in Kochi’s industrial sector, where HOCL remains one of the region’s prominent public-sector manufacturing enterprises. Authorities and industry stakeholders expect further updates once market conditions stabilize and the company finalizes its operational plans.
