SI Group to close alkylphenol production plant in Singapore

The Woodlands, Texas – Additives manufacturer SI Group is planning to close its alkylphenol production facility in Singapore, due to declining demand.

The Jurong Island unit is set to cease operation in the second half of 2025, with the group aiming to supply alkylphenols from its facilities in Europe and the Americas, said SI Group 25 Sept.

The US group opened its alkylphenol manufacturing plant on Jurong Island in 2006 to provide the chemicals to Asia-Pacific consumers and also to support its own production of antioxidant products.

However, the group said it was terminating the plant’s operations due to the “substantial changes in the antioxidant value chain in the region in recent years, paired with high costs in Singapore.”

“The current supply-demand balances in Asia and the cost to manufacture in the region make this a necessary move to ensure the long-term sustainability of our global business,” said Joey Gullion, SVP & chief commercial officer at SI Group.

Among other applications, alkylphenols are used as emulsifiers for polymerisation, and in tackifier resins used in the manufacture of rubber products, especially in tires.

According to group president and CEO David Bradley, the plant closure is part of SI Group’s ‘shifted of strategy’ in Asia-Pacific region. 

“The region is important to our business, and we believe this new approach will help us balance the market dynamics with our cost position,” he added.

Earlier this year, the US group announced the closure of its plant in Jinshan, China having entered a long-term supply partnership with Chinese additives manufacturer Liaoning Dingjide Petrochemical.

Under the terms of the deal, Dingjide will manufacture certain SI Group products in China as a co-producer. (ERJ report)

“[With] Our recent partnership with Dingjide… we are now better equipped and excited to support our customers' growth,” Bradley added.