SI Group and Shengxiao Group announced the establishment of a joint venture aimed at accelerating the expansion of additional biphenol production capacity in China. The new company, operating under the name Shengnova Advanced Materials, is intended to increase the availability of this raw material in the region and respond to growing demand across Asia-Pacific. The project is based on combining Shengxiao Group’s existing biphenol manufacturing assets and regional market access with SI Group’s proprietary technology and global expertise in this chemical compound. The joint venture is headquartered in Sichuan, China.
Biphenol is an important monomer used in liquid crystal polymers, LCP, polyphenylenesulfone, PPSU, and other applications. According to the partners, the new company is expected to better support growing demand in sectors such as electronics, automotive, and medical, where high-performance materials play an important role in next-generation applications. According to the companies, increasing local supply is also expected to improve customer service in the region through supply carried out closer to end markets.
Combination of assets and technology
Shengnova Advanced Materials combines Shengxiao Group’s biphenol production asset and the company’s regional market access with SI Group’s proprietary technology and its experience in global biphenol supply. According to the information provided by the partners, the goal of the joint venture is to increase local supply of this specific molecule and improve the competitiveness of supply for customers in Asia.
Guo Xiaozhong, Chairman of Shengxiao Group, said: "We are pleased to partner with SI Group to form Shengnova Advanced Materials to supply biphenol to customers in Asia. As a leading supplier of monomers for liquid crystal polymers, LCP, biphenol is a key component of our portfolio. Our customers value in-region supply, and bringing SI Group’s biphenol expertise to China will benefit the growing end markets in the region."
Importance for the global supply structure
SI Group emphasizes that the new company is part of the enterprise’s growth strategy and strengthens its ability to serve customers in key global markets. The company also noted that the development of operations in China will proceed in parallel with continued production at its facility in Newport, Tennessee.
David Bradley, President and CEO of SI Group, stated: "This joint venture supports SI Group’s growth strategy and strengthens our ability to serve customers in key markets around the world. Through the formation of Shengnova Advanced Materials, we are expanding our ability to competitively supply biphenol to customers in Asia while continuing production at our facility in Newport, Tennessee. This enables SI Group to better serve global customers, support growing regional demand, and reinforce security of supply through a multi-region production footprint."
