Brenntag launches new Life Sciences Innovation & Application Centre in Shanghai
This move builds on Brenntag’s prior 2023 acquisition of Shanghai Saifu Chemical, which strengthened its personal care distribution in Greater China.
CHINA – Brenntag has opened a new Life Sciences Innovation & Application Centre in Shanghai to bolster its presence in China and enhance technical expertise across the Beauty & Care and Food & Nutrition sectors.
The hub enables formulation development, testing, and the delivery of innovative solutions to customers in China and Hong Kong.
The centre serves as a collaborative platform for translating ingredient knowledge into market-ready applications, announced on March 16, 2026.
Liu Hua, President Brenntag Specialties China and Hong Kong, said, “The new centre in Shanghai allows us to work even more closely with partners across China and Hong Kong.”
“As a collaborative innovation platform, it enables formulation development, application testing, and concept creation across Brenntag’s Life Sciences portfolio, helping us translate ingredient expertise into practical solutions for the market.”
The facility supports personal and home care product formulations through advanced testing like emulsion analysis, surfactant evaluation, hair combing force tests, skin analysis, and laundry performance checks.
It includes a lab-scale mixing system for small-batch trials and optimization.
Francois Bleger, Global President, Beauty & Care, and Brenntag Specialities APAC President, highlighted accelerated innovation to address evolving consumer trends through value-chain collaboration.
In addition, applications cover ready-to-drink beverages, dairy, bakery, confectionery, and savoury products, with formulation and taste evaluations aligned with health trends. It targets sports nutrition, children’s health, and concepts of healthy ageing.
The hub aligns with Brenntag’s “Strategy to Win,” prioritizing Life Sciences growth in Asia amid rising demand for sustainable, innovative ingredients.
Brenntag full-year 2025 financial results
The company reported revenue of €15.2 billion (USD 16.57 billion), down 3.7% from 2024, with operating gross profit at €3.8 billion (USD 4.14 billion).
Operating EBITDA fell 8.6% to €1.29 billion (USD 1.53 billion), while operating EBITA declined 12.6% to €929 million, slightly below adjusted guidance due to weak customer demand across divisions.
Despite this, gross margin improved to 25.3% from 24.8%, and free cash flow rose 5.4% to €941 million, driven by strong working capital management.
Brenntag Essentials generated an operating gross profit of €2,733 million (USD 2.98 billion), boosting its gross margin to 26.4% despite headwinds from Chinese exports and weak demand in North America, EMEA, and APAC.
Brenntag Specialities posted €1,098 million (USD 1.2 billion), but lifted its margin to 22.9%through stable pricing in Life Science and Material Science.
Brenntag accelerated its global cost-out program, achieving €165 million (USD 180 million) in 2025 savings through overhead streamlining and expanded initiatives, on track to reach €300 million annually by 2027.
It now targets an additional €200-250 million (USD 218-273 million) in savings by 2027 relative to 2025.
For 2026, operating EBITDA guidance is €1,150-1,350 million (USD 1.25-1.47 billion), assuming flat markets, volatility, and no short-term recovery, while prioritizing M&A and operational sharpening.
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