Ethylene Glycol Production Cost Analysis Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue

Ethylene Glycol Production Cost Analysis Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue

Report Format: PDF+Excel | Report ID: SR112025A7708

Report Overview: 

IMARC Group’s report, titled “Ethylene Glycol Production Cost Analysis Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue” provides a complete roadmap for setting up an ethylene glycol production plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The report also provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

Ethylene glycol (C2H6O2), also known as ethane-1,2-diol, is a synthetic liquid substance that absorbs water. It is a diol, which has two hydroxyl (-OH) groups located on adjacent carbon atoms. It is used as a raw material to produce polyester fibers, fiberglass, and polyethylene terephthalate resin, which are further utilized in the manufacturing of upholstery, bathtubs, bowling balls, and packaging materials.

C2H6O2 is a colorless, odorless, and sweet tasting liquid that has a melting point of -12.9°C, boiling point of around 197.3 °C, and a density of 1.113 g/mL at 25°C. It is soluble in water, alcohol, and many other organic solvents. It can react with carboxylic acids to form esters, with aldehydes for forming acetals, and with ketones to form ketals. It can be oxidized to form glyoxal, glycolic acid, and oxalic acid. It can undergo etherification and esterification reactions with various reagents. It can also form complexes with metal ions, such as copper and nickel.

There is an increase in the use of C2H6O2 in the automotive industry as a coolant and antifreeze in internal combustion engines to transfer heat away from the engine and prevent the coolant from freezing in cold weather. It also contains corrosion inhibitors that protect the engine from rust and corrosion caused by the coolant. C2H6O2 acts as a lubricant in the water pump of the vehicle that helps to reduce friction and wear. This, coupled with the rising sales of luxury vehicles on account of rapid urbanization and inflating income levels, represents one of the major factors bolstering the market growth around the world. Furthermore, C2H6O2 is employed in the construction industry for producing insulation materials, such as polyurethane and polyisocyanurate, to insulate buildings and improve their energy efficiency. This, along with the growing construction activities in the residential, commercial, and industrial areas, is influencing the market positively.

    The following aspects have been covered in the report on setting up a ethylene glycol production plant:

Ethylene Glycol Production Cost Analysis Report

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  • Market Analysis:
    • Market Trends
    • Market Breakup by Segment
    • Market Breakup by Region
    • Price Analysis
    • Impact of COVID-19
    • Market Forecast
       

The report provides insights into the landscape of the ethylene glycol industry at the global level. The report also provides a segment-wise and region-wise breakup of the global ethylene glycol industry. Additionally, it also provides the price analysis of feedstocks used in the manufacturing of ethylene glycol, along with the industry profit margins.

  • Detailed Process Flow:
    • Product Overview
    • Unit Operations Involved
    • Mass Balance and Raw Material Requirements
    • Quality Assurance Criteria
    • Technical Tests
       

The report also provides detailed information related to the process flow and various unit operations involved in a ethylene glycol production plant. Furthermore, information related to mass balance and raw material requirements has also been provided in the report with a list of necessary quality assurance criteria and technical tests.

  • Project Details, Requirements and Costs Involved:
    • Land, Location and Site Development
    • Plant Layout
    • Machinery Requirements and Costs
    • Raw Material Requirements and Costs
    • Packaging Requirements and Costs
    • Transportation Requirements and Costs
    • Utility Requirements and Costs
    • Human Resource Requirements and Costs
       

The report provides a detailed location analysis covering insights into the land location, selection criteria, location significance, environmental impact, and expenditure for setting up a ethylene glycol production plant. Additionally, the report provides information related to plant layout and factors influencing the same. Furthermore, other requirements and expenditures related to machinery, raw materials, packaging, transportation, utilities, and human resources have also been covered in the report.

  • Project Economics:
    • Capital Investments
    • Operating Costs
    • Expenditure Projections
    • Revenue Projections
    •  Taxation and Depreciation
    • Profit Projections
    • Financial Analysis
       

The report also covers a detailed analysis of the project economics for setting up a ethylene glycol production plant. This includes the analysis and detailed understanding of capital expenditure (CapEx), operating expenditure (OpEx), income projections, taxation, depreciation, liquidity analysis, profitability analysis, payback period, NPV, uncertainty analysis, and sensitivity analysis. Furthermore, the report also provides a detailed analysis of the regulatory procedures and approvals, information related to financial assistance, along with a comprehensive list of certifications required for setting up a ethylene glycol production plant.

Ethylene Glycol Production Plant


Capital Expenditure Breakdown:

Particulars Cost (in US$)
Land and Site Development Costs XX
Civil Works Costs XX
Machinery Costs XX
Other Capital Costs XX


Operational Expenditure Breakdown:

Particulars In %
Raw Material Cost XX
Utility Cost XX
Transportation Cost XX
Packaging Cost XX
Salaries and Wages XX
Depreciation XX
Other Expenses XX


Profitability Analysis: 

Particulars Unit Year 1 Year 2 Year 3 Year 4 Year 5
Total Income US$ XX XX XX XX XX
Total Expenditure US$ XX XX XX XX XX
Gross Profit US$ XX XX XX XX XX
Gross Margin % XX XX XX XX XX
Net Profit US$ XX XX XX XX XX
Net Margin % XX XX XX XX XX


Report Coverage:

Report Features Details
Product Name Ethylene Glycol
Report Coverage Detailed Process Flow: Unit Operations Involved, Quality Assurance Criteria, Technical Tests, Mass Balance, and Raw Material Requirements 
 
Land, Location and Site Development: Selection Criteria and Significance, Location Analysis, Project Planning and Phasing of Development, Environmental Impact, Land Requirement and Costs 
 
Plant Layout: Importance and Essentials, Layout, Factors Influencing Layout 
 
Plant Machinery: Machinery Requirements, Machinery Costs, Machinery Suppliers (Provided on Request) 
 
Raw Materials: Raw Material Requirements, Raw Material Details and Procurement, Raw Material Costs, Raw Material Suppliers (Provided on Request) 
 
Packaging: Packaging Requirements, Packaging Material Details and Procurement, Packaging Costs, Packaging Material Suppliers (Provided on Request) 
 
Other Requirements and Costs: Transportation Requirements and Costs, Utility Requirements and Costs, Energy Requirements and Costs, Water Requirements and Costs, Human Resource Requirements and Costs  
 
Project Economics: Capital Costs, Techno-Economic Parameters, Income Projections, Expenditure Projections, Product Pricing and Margins, Taxation, Depreciation 
 
Financial Analysis: Liquidity Analysis, Profitability Analysis, Payback Period, Net Present Value, Internal Rate of Return, Profit and Loss Account, Uncertainty Analysis, Sensitivity Analysis, Economic Analysis 
 
Other Analysis Covered in The Report: Market Trends and Analysis, Market Segmentation, Market Breakup by Region, Price Trends, Competitive Landscape, Regulatory Landscape, Strategic Recommendations, Case Study of a Successful Venture 
 
Currency US$ (Data can also be provided in the local currency) 
Customization Scope  The report can also be customized based on the requirement of the customer 
Post-Sale Analyst Support   10-12 Weeks
Delivery Format PDF and Excel through email (We can also provide the editable version of the report in PPT/Word format on special request) 


Report Customization

While we have aimed to create an all-encompassing report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

  • The report can be customized based on the location (country/region) of your plant.
  • The plant’s capacity can be customized based on your requirements.
  • Plant machinery and costs can be customized based on your requirements.
  • Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

  • The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
  • Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
  • Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
  • We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
  • Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
  • Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. has played a crucial role in constructing, expanding, and optimizing sustainable production plants worldwide.

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
  • Include additional segments and countries to customize the report as per your requirement.
  • Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
  • For further assistance, please connect with our analysts.
Ethylene Glycol Production Cost Analysis Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue
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Factory Setup Services

IMARC Group's factory setup services streamline the entire establishment process, ensuring efficient planning, seamless execution, and optimal operational readiness for your manufacturing facility.

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Site Selection Services

IMARC Group's site selection services optimize location choices for businesses, ensuring strategic, cost-effective, and efficient manufacturing operations.

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Engineering and Design Services

IMARC Group's factory engineering and design services deliver efficient and customized solutions to enhance operational performance and optimize production processes.

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Factory Audit Services

IMARC Group's plant audit services offer comprehensive evaluations of your industrial facility's health, efficiency, and regulatory compliance.

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Regulatory Approvals, and Licensing Services

IMARC Group's regulatory approval and licensing services ensure businesses meet all compliance requirements, facilitating smooth and timely market entry.

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Partner Identification

IMARC Group's partner identification services help businesses find the ideal distributor, machinery supplier, raw material provider, or contract manufacturer, enhancing operational efficiency and growth.

Frequently Asked Questions

Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.

To start an ethylene glycol production business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.

Ethylene glycol production requires ethylene as the primary raw material, along with oxygen and water.

The ethylene glycol factory typically requires ethylene oxide reactor, hydrolysis reactors, heat exchangers, separation and distillation columns, and storage tanks. Supporting equipment includes pumps, compressors, control systems, and safety units for high-pressure operations.

The main steps generally include:

  • Sourcing of raw materials

  • Oxidation of ethylene-to-ethylene oxide

  • Hydrolysis of ethylene oxide to ethylene glycol

  • Separation and purification

  • Storage and packaging

  • Quality testing and control

Usually, the timeline can range from 12 to 36 months to start an ethylene glycol production plant depending on factors like plant’s capacity, regulatory approvals, and complexity of the production process. Time is also needed for design, construction, equipment installation, and trial operations.

Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.

Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.

The top ethylene glycol manufacturers are:

  • Akzo Nobel N.V.

  • Ashland Global Specialty Chemicals Inc.

  • BASF SE

  • China Petrochemical Corporation (Sinopec Group)

  • Dow Inc.

  • Formosa Plastics Corporation

  • Huntsman Corporation

  • Ineos Oxide Limited (INEOS Holdings Limited)

  • Lotte Chemical Corporation

  • Lyondellbasell Industries Inc.

  • Reliance Industries Limited

  • SABIC

  • Shell plc

Profitability depends on several factors including market demand, production efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.

Cost components typically include:

  • Land and Infrastructure

  • Machinery and Equipment

  • Building and Civil Construction

  • Utilities and Installation

  • Working Capital

Break even in an ethylene glycol production business typically range from 3 to 6 years, depending on plant size, capital investment, raw material pricing, market conditions, and operational efficiency. Strategic long-term contracts can help accelerate ROI.

Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote manufacturing under various national or regional industrial policies.

Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.