Shandong Head Group Announces $80M Capsules Manufacturing Facility in the United States, Strengthening Commitment to North American Customers through Domestic Investment
December 19, 2024 — Shandong Head Group Co., Ltd., a leading global enterprise and manufacturer of HPMC empty capsules, announces plans to invest USD $80 million in a new production facility in the United States that will be dedicated to enhancing service and supply chain efficiency for its North American customers.
Upon completion, the new facility will add more than 20 billion HPMC capsules per year to the company’s production capacity, supporting the growing demand for high-quality, vegetarian-friendly capsule solutions in the U.S. and surrounding markets. Leveraging local infrastructure and talent, the state-of-the-art facility is estimated to create a total of 200 full-time jobs in the coming years. This investment represents a significant step forward in Shandong Head Group’s mission to globalize operations while cultivating local partnerships.
“Our customers are at the heart of everything we do. 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,” said Johnnie Chen, Chief Operating Officer of SD Head USA. “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.”
With its investment to establish the production of capsules domestically, this expansion will also address challenges posed by international trade disruptions, global supply chain uncertainties, and other market fluctuations. The move reflects the company’s focus on global sustainability, operational resilience, and customer-centric innovation.
Strategic Growth & Customer Benefits
The decision to establish manufacturing operations in the U.S. aligns with broader trends toward regionalized production and supply chain optimization. Benefits for customers include:
- Reduced exposure to global supply volatility and international trade uncertainties
- Improved supply chain management with faster and more reliable delivery
- Cost savings and lower carbon footprint resulting from reduced transportation
- Enhanced flexibility to meet regional market demands
- Contributing to regional economy and local job creation
Global Vision, Local Solutions
As part of its long-term strategy, Shandong Head Group continues to expand its global footprint. The U.S. facility joins its growing network of manufacturing hubs, ensuring localized solutions for customers while supporting the company’s vision of sustainable, globalized growth.
About Shandong Head Group Co., Ltd.
With 30+ years of manufacturing excellence, Shandong Head Group is the world’s leading producer of cellulose ethers and operates the 1st vertically integrated supply chain of empty HPMC capsules. Caps-Healsee® is a leading global brand of empty HPMC capsules, offering a comprehensive range of solutions for the nutraceutical and pharmaceutical market. With a current annual capacity of 30+ billion capsules, the Caps-Healsee® brand is renowned for its proven quality and supply that empowers manufacturers to create superior products.