SI Group reorganises China production under new local partnership

The Woodlands, Texas – Performance additives supplier SI Group has entered a long-term supply partnership with Liaoning Dingjide Petrochemical as part of the restructuring of its production in China.

Through the partnership, Dingjide will manufacture certain SI Group products in China as a co-producer, said SI Group in an announcement 21 Feb.

As a result of the supply agreement, SI Group will cease manufacturing operations at its Jinshan, China manufacturing facility and will list the property and associated legal entity for sale.

Under terms of the agreement, SI Group will continue to offer the products to customers in China and will distribute and sell the materials outside of China.

The company release did not specify what products will be manufactured by Dingjide but said antioxidants will be included in the portfolio.

With the agreement, SI Group said it would seeks to relocate its R&D facilities in Jinshan and will continue to operate its remaining offices and manufacturing facility in China.

The partnership will help the group optimise its footprint and ‘variablise’ cost structure, explained Joey Gullion, SVP chief commercial officer at SI Group.

The move is part of the group’s vision of becoming a “global performance additives powerhouse” and the partnership is “a significant step in that journey,” the group added.

The partnership, said CEO and president David Bradley, will realise “quality growth in Asia Pacific and globally.”

“Our agreement with Dingjide reinforces our position as a main antioxidant supplier of choice for our customers,” Bradley added.

SI Group’s Jinshan manufacturing facility is expected to cease manufacturing operations on 31 July.

The company will list the site for sale and seek a buyer immediately.