"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," he said.
With the agreement in place, SI Group will halt operations at its Jinshan, China, facility, a property that will be listed for sale. Operations will cease July 31, SI Group said, noting that the research and development facilities in Jinshan will be relocated.
SI Group said it will continue to distribute and sell these materials outside of China, as well.
"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, senior vice president and chief commercial officer at SI Group.
The new partnership with Dingjide is seen as an accelerator toward gaining greater market share in Asia.
"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."