Page 154 - CW E-Magazine (5-3-2024)

News from Abroad

BUSINESS STRATEGY
SI Group to stop making additives at Jinshan site;

to source from Chinese firm

SI Group, the US-based manufac- Group will continue to offer these pro- mercial Officer at SI Group. SI Group
turer of performance additives and ducts to customers in China and will dis- continues to make progress toward the
chemical intermediates, has announced tribute and sell these materials outside vision of being the global performance
a long-term supply partnership with of China. SI Group will seek to relocate additives powerhouse and sees this
Liaoning Dingjide Petrochemical Co. its research and development facilities partnership as a significant step in that
Ltd., a Chinese-based manufacturer of currently located in Jinshan and will journey.
additives and other speciality chemi- continue to operate its remaining offi-
cals. Through this partnership, Dingjide ces and manufacturing facility in China. “As part of our business strategy,
will manufacture certain SI Group we continually seek new ways to realise
products in China as a co-producer. “By partnering with Dingjide, SI quality growth in Asia Pacific and
As a result of the supply agreement, SI Group is able focus on establishing globally. In addition to our high-quality
Group will cease manufacturing ope- global performance additives leader- standards and excellent service, this
rations at its Jinshan, China facility on ship through its global sales and mar- local supply point through our agreement
July 31, 2024, and list the property and keting reach and investments in inno- with Dingjide reinforces our position as
associated legal entity for sale. vation, while optimising our footprint a main antioxidant supplier of choice for
and variablising our cost structure,” our customers,” said Mr. David Bradley,
Under terms of the agreement, SI said Mr. Joey Gullion, SVP Chief Com- President and CEO at SI Group.

INORGANIC GROWTH
Orica to expand mining chemicals business with

Cyanco acquisition

Australian supplier of commercial “Cyanco is a highly complementary
explosives and sodium cyanide, business, and by combining it with our
Orica, has agreed to acquire 100% of established sodium cyanide business,
the common stock of Cyanco Interme- Orica will create a leading integrated
diate 4 Corp. from an affiliate of Cer- global sodium cyanide producer with
berus Capital Management, for $640- world-class supply capabilities in min-
mn on a cash-free, debt-free enterprise ing. The acquisition will more than
value basis. double Orica’s existing sodium cyanide
production capacity and provide us
Orica will fund the buy mainly with the ability to cater to the highly
through an underwritten institutional attractive US and Canadian gold min-
placement worth A$400-mn ($261.9- ing industries,” Orica’s CEO, Mr. San-
mn), along with existing cash and debt jeev Gandhi, said in a statement.
facilities, the company said.
Sodium cyanide is a specialised
Orica said the acquisition of the chemical required for gold mining,
US-based leader in the manufacture business. Cyanco produces sodium with no commercially viable substitute.
and distribution of sodium cyanide pri- cyanide at its Nevada and Texas plants in Global sodium cyanide demand is esti-
marily serving the gold mining indus- the US. The two plants will more than mated to grow at ~4% per annum from
tries in the US, Canada, Mexico, Latin double Orica’s existing sodium cyanide 2023 to 2028, with North American
America, and Africa, would comple- production capacity to approximately sodium cyanide demand growing at ~5%
ment its established mining chemicals 240-ktpa. per annum in the same period.

154 Chemical Weekly March 5, 2024

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