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Company to cease manufacturing operations at its Jinshan, China manufacturing facility
THE WOODLANDS, Texas, Feb. 22, 2024 /PRNewswire/ -- SI Group, a leading global developer and manufacturer of performance additives, process solutions, pharmaceuticals and chemical intermediates, announced today a long-term supply partnership with Liaoning Dingjide Petrochemical Co., Ltd. (Dingjide) 603255:CHShanghai (CNY), a Chinese-based manufacturer of additives and other specialty chemicals. Through this partnership, Dingjide will manufacture certain SI Group products in China as a co-producer. As a result of the supply agreement, SI Group will cease manufacturing operations at its Jinshan, China manufacturing facility and list the property and associated legal entity for sale.
Under terms of the agreement, SI Group will continue to offer these products to customers in China and will distribute and sell these materials outside of China. SI Group will seek to relocate its research and development facilities currently located in Jinshan and will continue to operate its remaining offices and manufacturing facility in China. "By partnering with Dingjide, SI Group is able focus on establishing global performance additives leadership through its global sales and marketing reach and investments in innovation, while optimizing our footprint and variablizing our cost structure," said Joey Gullion, SVP Chief Commercial Officer at SI Group.
SI Group continues to make progress toward the vision of being the global performance additives powerhouse and sees this partnership as a significant step in that journey. "SI Group has a long history of providing quality products to industries worldwide. As part of our business strategy, we continually seek new ways to realize quality growth in Asia Pacific and globally," said David Bradley, President and CEO at SI Group. "In addition to our high-quality standards and excellent service, this local supply point through our agreement with Dingjide reinforces our position as a main antioxidant supplier of choice for our customers."
Dingjide will uphold SI Group's high quality product standards with production at its modern manufacturing facility. "We're very pleased to enter into a long-term strategic agreement with SI Group. By partnering with SI Group, an international leader in additives, Dingjide will leverage its world-class quality and production capabilities to support antioxidant growth in the global marketplace," said Mr. Zaiming Zhang, Chairman of Board of Directors, Liaoning Dingjide Petrochemical.
SI Group's Jinshan, China manufacturing facility is expected to cease manufacturing operations on July 31, 2024. The company will list the site for sale and seek a buyer immediately.
About SI Group
About SI Group SI Group is a global leader in the innovative technology of performance additives, process solutions, active pharmaceutical ingredients, and chemical intermediates. SI Group solutions are essential to enhancing the quality and performance of countless industrial and consumer goods within the plastics, rubber & adhesives, fuels & lubricants, oilfield, and pharmaceutical industries. SI Group's global manufacturing footprint includes 20 facilities on three continents, serving customers in 80 countries with approximately 2,000 employees worldwide. In 2021, SI Group received a gold award for corporate social responsibility by EcoVadis and is ranked among the top five percent of more than 50,000 worldwide companies. SI Group innovates and drives change to create value with a passion for safety, chemistry, sustainability, and extraordinary results. Learn more at www.siigroup.com.
Media Contact: Joseph Grande
ph: + 1.413.684.2463
joe@jgrandecommunications.com
