NEWPORT — Help is on the way for the Delaware arm of one of the world’s largest ink pigment manufacturers as it tries to fund maintenance costs for a critical machine located in the First State.
Sun Chemical of Newport, a subsidiary of Sun Chemical Corporation of New Jersey which manufactures printing inks and pigments, has secured a state grant to help defray costs in hopes of not losing one of its most critical pieces of equipment.
The plant in Delaware is located on South James Street and was a former BASF Corp.. It was later acquired in a 2019 acquisition for the global pigment business, which now produces red and purple pigments in dye powder form at the ship before it is shipped across the globe.
Inside the plant, there is a 100-year-old machine that processes pigment compounds that have structural deficiencies to the point where production cannot continue beyond 2026. This production line is critical to the entire operation of the manufacturing plant, including its 127 employees. There are also 25 to 50 contractor jobs on site that would be impacted.
To upgrade the plant and preserve those jobs, Sun Chemical plans to invest $12.6 million in equipment and renovations. The Council on Development Finance awarded a $1 million Facility Modernization Investment Support Initiative (MISI) grant in late April to help cover costs.
The remaining $11.5 million will be covered by cash on hand by Sun Chemical, according to the company’s grant application.
Delaware first established the Modernization Investment Support Initiative pilot in 2023, with $5 million set aside from the Delaware Strategic Fund. The pilot was launched to aid companies to upgrade existing manufacturing facilities within Delaware that might otherwise fall behind competitive facilities outside the state.
The Sun Chemical grant is the fourth MISI grant awarded since the program was first launched.
Representatives for Sun Chemical were not available to respond to the Delaware Business Times’ request for comment.
