Shandong Head Group announces new US facility for HPMC empty capsules
The production center for the plant-based capsules is expected to address a growing demand in the US.
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In a December 19, 2024, press release, Shandong Head Group, a cellulose ether and HPMC empty capsules manufacturer, announced its plan to invest $80 million in a new facility to better serve North American customers. The facility will be located in the US and will reportedly add more than 20 billion HPMC capsules per year to its production capacity. Head Group operates a vertically integrated supply chain of HPMC capsules, and its brand Caps-Healsee has a current annual capacity of more than 30 billion capsules.
The development of the facility aligns with the company’s goals to expand its international growth while also serving local operations sustainably.
“Our customers are at the heart of everything we do,” stated Johnnie Chen, chief operating officer of SD Head USA, in the press release. “This facility will allow us to serve our North American partners more effectively while helping them reduce lead times and ensure a more robust and reliable supply chain. We’re proud to demonstrate our long-term business commitment to our customers in the U.S. and Canada, the world’s number one market for plant-based capsules.” SD Head USA is the North American division of Shandong Head Group.
As noted in the press release, customer benefits of the new facility include faster delivery from improved supply chain management, reduced transportation resulting in cost savings and lowered carbon footprint, creation of an estimated 200 jobs in the future, and more. The domestic facility will also minimize the risk from uncertainties in international trade and supplies.
