SI Group forms China supply agreement for optimized manufacturing
Photo courtesy of SI Group

SI Group forms China supply agreement for optimized manufacturing

Specialty chemicals firm SI Group announced a strategic long-term deal with China’s Liaoning Dingjide Petrochemical to manufacture certain SI Group additive products locally. As a result, SI Group will cease operations at its Jinshan, China, plant while seeking a buyer.

Under the co-producer agreement, SI Group retains global distribution rights outside China for the materials involved, including antioxidants. It will relocate its Jinshan R&D while maintaining a China commercial presence.

SI Group President and CEO David Bradley said the pact realizes targeted Asia Pacific growth through a quality local supply point reinforcing its position as a leading antioxidant provider.

Dingjide Chairman Zaiming Zhang added that applying its world-class production capacities to support SI Group’s products carries mutual benefits in seizing global marketplace potential.

The agreement allows SI Group to focus growth efforts on sales, marketing and innovation globally while optimizing assets. The Jinshan facility is expected to cease manufacturing on July 31, 2024 as integration proceeds.

About SI Group

SI Group provides solutions through its performance additives, process technologies and pharmaceutical inputs. With 20 manufacturing facilities worldwide, it serves thousands of industrial and consumer goods customers globally in sectors spanning fuels, lubricants, rubber and plastics.