Top 10 Companies in the China HFC Production Quota HCFC Phase‑Out HKFP Mechanism Market (2026): Market Leaders Powering Global Refrigerant Transition

MARKET INSIGHTS

China’s HFC production quota, HCFC phase‑out, and HKFP mechanism market was valued at USD 1.42 billion in 2025. The market is forecast to grow from USD 1.49 billion in 2026 to USD 2.18 billion by 2034, reflecting a compound annual growth rate of 4.9% across the forecast period.

The framework combines quota allocation for hydrofluorocarbons (HFCs), the structured elimination of hydrochlorofluorocarbons (HCFCs) under the Montreal Protocol, and administrative mechanisms that steer industry stakeholders in refrigeration, air‑conditioning, foam blowing, and industrial chemical sectors toward compliant alternatives.

Momentum is driven by China’s commitments under the Kigali Amendment, which imposes a phased reduction in HFC consumption from 2024, and by tighter quota systems enforced by the Ministry of Ecology and Environment. Rising demand for low‑GWP alternatives such as HFOs and natural refrigerants is reshaping compliance strategies for major domestic manufacturers including Zhejiang Juhua Co., Ltd., Daikin Fluorochemicals China, and Sinochem Holdings Corporation.

China HFC Production Quota HCFC Phase‑Out HKFP Mechanism Market – View in Detailed Research Report

In 2025 the market was USD 1.42 billion, with a projected rise to USD 2.18 billion by 2034. The forecast reflects ongoing regulatory tightening and the transition toward lower‑GWP refrigerants.

HFCs and HCFCs are classified by their global warming potential (GWP). High‑GWP HFCs such as R134a and R32 are currently regulated under quota limits, while HCFCs are being phased out in line with the Montreal Protocol. The HKFP mechanism provides a key freeze point that signals when a substance’s production quota will be reduced or eliminated, guiding manufacturers in planning capacity and technology upgrades.

Top 10 Companies in the China HFC Production Quota HCFC Phase‑Out HKFP Mechanism Market (2026)

1️⃣ Zhejiang Juhua Co., Ltd.

Headquarters: Hangzhou, China
Key Offering: R134a, R32, R125 production, and HFO blends

Zhejiang Juhua maintains the largest production capacity for key HFCs in China, leveraging vertically integrated operations from fluorspar to finished refrigerants. The company’s focus on process efficiency and waste minimisation aligns with quota constraints and environmental expectations.

Sustainability & Growth Initiatives:

• Investing in HFO‑based blends to replace high‑GWP HFCs
• Deploying closed‑loop recovery systems across all plants
• Partnering with research institutions to develop low‑GWP formulations

2️⃣ Sinochem Lantian Co., Ltd.

Headquarters: Shanghai, China
Key Offering: R134a, R32, R245fa, and HFO solutions

Sinochem Lantian’s integrated supply chain spans hydrofluoric acid production to final refrigerant blends, positioning it to manage quota allocations efficiently while exploring low‑GWP alternatives.

Sustainability & Growth Initiatives:

• Accelerating transition to HFO and natural refrigerants in core product lines
• Implementing digital quota‑tracking platforms for real‑time compliance
• Supporting downstream manufacturers with technical assistance on low‑GWP formulations

3️⃣ Daikin Fluorochemicals China

Headquarters: Shanghai, China
Key Offering: R32, R134a, and HFO‑based refrigerants

Daikin’s Chinese arm leverages global expertise to deliver high‑performance refrigerants that meet stringent quota limits while preparing for future phase‑outs.

Sustainability & Growth Initiatives:

• Developing high‑efficiency HFO blends for commercial air‑conditioning systems
• Expanding recycling and reclamation services for end‑of‑life refrigerants
• Collaborating with OEMs to retrofit existing equipment to low‑GWP refrigerants

4️⃣ Dongyue Group Ltd.

Headquarters: Nanjing, China
Key Offering: R134a, R32, and HFO intermediates

Dongyue’s diversified production portfolio allows it to adjust output in response to quota changes while investing in advanced synthesis technologies.

Sustainability & Growth Initiatives:

• Upgrading catalytic reactors to improve yield and reduce by‑products
• Integrating carbon capture units to offset direct emissions
• Exploring partnerships for low‑GWP foam blowing agents

5️⃣ Zhejiang Sanmei Chemical Industry Co., Ltd.

Headquarters: Hangzhou, China
Key Offering: R32, R134a, and HFO intermediates

Sanmei focuses on high‑purity HFC production and has recently expanded its HFO blend capabilities to meet market demand for low‑GWP solutions.

Sustainability & Growth Initiatives:

• Deploying advanced filtration systems to minimise environmental release
• Investing in R&D for high‑efficiency HFO synthesis pathways
• Offering consulting services for quota compliance to smaller manufacturers

6️⃣ Shandong Dongyue Chemical Co., Ltd.

Headquarters: Qingdao, China
Key Offering: R134a, R32, and HFO intermediates

Shandong Dongyue’s regional presence supports distribution across northern China, enabling rapid response to quota adjustments.

Sustainability & Growth Initiatives:

• Implementing closed‑loop water recycling in production units
• Partnering with local universities for low‑GWP research projects
• Optimising plant layouts to reduce energy consumption per ton of output

7️⃣ Changshu 3F Fluorochemical Industry Co., Ltd.

Headquarters: Changshu, China
Key Offering: R134a, R32, and HFO intermediates

Changshu 3F’s focus on HFC and HFO production supports regional demand for refrigeration and air‑conditioning applications.

Sustainability & Growth Initiatives:

• Installing high‑efficiency compressors to lower energy use
• Engaging in community outreach on responsible refrigerant handling
• Developing low‑GWP foam blowing agents for the construction sector

8️⃣ Jinhua Yonghe Fluorochemical Co., Ltd.

Headquarters: Jinhua, China
Key Offering: R32, R134a, and HFO intermediates

Jinhua Yonghe’s integrated production chain allows it to meet quota allocations while expanding low‑GWP product lines.

Sustainability & Growth Initiatives:

• Implementing real‑time monitoring of HFC emissions
• Expanding collaboration with OEMs for low‑GWP retrofit kits
• Investing in renewable energy sources for plant operations

9️⃣ China National Chemical Corporation (ChemChina)

Headquarters: Beijing, China
Key Offering: R134a, R32, and HFO blends

As a state‑owned conglomerate, ChemChina’s chemical division contributes significant capacity to the HFC market and has begun allocating resources to low‑GWP research.

Sustainability & Growth Initiatives:

• Launching a national program for HFO development across subsidiaries
• Implementing a company‑wide carbon accounting framework
• Co‑financing pilot projects for natural refrigerant deployment in industrial plants

🔟 Sinopec Chemical

Headquarters: Beijing, China
Key Offering: R134a, R32, and HFO intermediates

Sinopec’s chemical arm leverages its extensive petrochemical network to secure feedstock for HFC production while exploring low‑GWP alternatives.

Sustainability & Growth Initiatives:

• Investing in advanced catalytic processes to reduce by‑product formation
• Establishing a national HFO blending facility to support regional demand
• Partnering with local governments to promote low‑GWP refrigerant adoption in public buildings

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Outlook: The Future of the China HFC Production Quota HCFC Phase‑Out HKFP Mechanism Market

As quota allocations tighten and HCFC phase‑outs accelerate, manufacturers will intensify investments in low‑GWP technologies. The transition will be driven by the need to maintain production volumes within regulatory limits while satisfying the growing demand for energy‑efficient and environmentally responsible refrigerants.

Future Trends Shaping the Market

• Accelerated rollout of HFO‑based refrigerants across commercial and industrial sectors
• Increased deployment of digital quota‑tracking platforms to ensure compliance and transparency
• Expansion of recovery, recycling, and destruction infrastructures to manage end‑of‑life refrigerants
• Strategic partnerships between large fluorochemical producers and OEMs to develop retrofit solutions for existing equipment
• Growing focus on carbon accounting and reporting to meet evolving environmental standards