Albemarle plant to be purchased by SI Group firm

Orangeburg’s Albemarle plant is being purchased by another specialty chemical manufacturer.

Albemarle Corporation (NYSE: ALB), announced Wednesday it has signed a definitive agreement to sell certain assets, including the Orangeburg plant, to SI Group, a manufacturer of chemical intermediates, specialty resins and solutions.

The transaction includes the Orangeburg plant’s antioxidants, ibuprofen and propofol businesses and assets as well as a plant in Jinshan, China.

“This is a growth-driven acquisition,” Kate Chauvin, SI Group marketing and communications coordinator, said when asked the transaction’s impact on the Orangeburg plant. “We are broadening our capabilities in a number of sectors as we become a more solutions-oriented company in the global antioxidant market and in selling active ingredients for pharmaceuticals.”

“The purpose behind this acquisition is growth — not consolidation,” Chauvin added. “The capabilities obtained at the newly acquired site are key assets to SI Group.”

Once the deal is closed, the Albemarle plant will become the SI Group, she said.

“We have signed an agreement with our intention to sell to the SI Group and we will be working to close in the next few months,” Ashley Mendoza, Albemarle Corporation communications director said. “In the interim, it is business as usual for the Albemarle plant. We will continue to own and operate the plant.”

The Orangeburg plant employs about 270 people and has about 100 contractor employees, Mendoza said.

The deal expands SI Group’s antioxidants business and will position the company as one of the top three global suppliers of Ibuprofen, according to an SI Group release.

SI Group touts itself as a leading global developer and manufacturer of chemical intermediates, specialty resins and solutions.

Founded in 1906 and headquartered in Schenectady, N.Y., SI Group is a family-owned company with facilities in 10 countries.

Certain applications and technical support capabilities in Shanghai, China and Baton Rouge, La. will also be included in the transaction.

Terms of the transaction were not disclosed.

“This transaction is the next step in our previously announced realignment and reflects our commitment to growing in a sustainable manner through increased focus on maximizing the value of and growing our core businesses,” said Luke Kissam, Albemarle president and CEO. “With this transaction, we are placing the antioxidants, ibuprofen and related businesses in the hands of a company with a long history and a proven record of successful integrations and growth. This sale represents the optimal choice to maximize value for our shareholders while positioning these businesses to extend their track record of industry leadership and success going forward.”

“It’s the largest deal in SI Group’s history,” said Frank Bozich, SI Group president and CEO. “This acquisition is a natural fit to our expansion strategy, transforming SI Group into a solutions leader in the global antioxidant and pharmaceutical active ingredients markets.”

Stephen Haller, SI Group senior vice president of strategy and new business development, said, “This acquisition is a major step in SI Group’s strategy of expanding into complementary, faster growing markets while at the same time continuously improving our core business through business excellence.”

The acquisition is subject to customary closing conditions and is expected to close later in 2014.

The sale comes a little more than a year after Albemarle’s announcement that it would invest $65 million in its Orangeburg plant over five years. Twenty jobs were said to be added as a result of the investment.

The largest expansion included the company’s fire-safety solutions line, where it would make flame retardants for use in insulation. It also added products in its Fine Chemistry Services business.

Albemarle sits on about a 300-acre site on Cannon Bridge Road. The company acquired Ethyl Corporation’s Orangeburg plant in March 1994.

Headquartered in Baton Rouge, La., Albemarle is a developer, manufacturer and marketer of specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, crop protection, food-safety and custom chemistry services.

For more information about SI Group, visit www.siigroup.com. ___

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