Shin-Etsu Chemical said it would make a new ¥100 billion investment in its silicones portfolio. Particularly, this segment is one of the core parts of the company’s functional materials business segment.

In February 2022, Shin-Etsu announced an investment plan worth ¥80 billion to meet the strong demand from customers for advanced functional silicone products. The demand for high-performance silicone products has continued to grow since then.

Especially, there are high expectations for eco-friendly products that are useful for promoting the goal of carbon neutrality, and the demand for them will continue to grow.

Propels Advanced Functionality

In response to the demand from society and our customers, Shin-Etsu said will expand the applications of silicones products. Particularly, the company said it will work to enhance the advanced functionality of its lineup and expand environmentally friendly silicones. Thus, these are the purposes of this new investment plan.

Leveraging our strong advanced technologies regarding silicones, Shin-Etsu’s silicones products have been contributing to realizing smaller as well as lighter-weight end products, from aircraft to electric vehicles.

In addition, our silicones products are also helping to extend the service lifetime of end products because of their advantage of long-term stability. Furthermore, the company is contributing to the reduction of the environmental load. Thus, developing products that help achieve resource, energy, and electric power saving. Production and manufacturing in wide range of fields, such as automotive, semiconductor, and communications industries, employ silicones.

Particularly, they play important roles in heat-dissipating sheets, which are essential for the ongoing transition to electric vehicles (EVs). In addition, in components incorporated into wind power-generation systems, a renewable energy source whose installations are greatly increasing.

Shin-Etsu’s silicones products also contribute to the reduction of greenhouse gases. This is true not only in its customers’ manufacturing processes but also in the usage stage of the final products. Examples of such products are high-consistency silicone rubber and advanced Liquid Injection Molding System (LIMS) materials. Both of which do not require post-curing (reheating) after molding. Furthermore, the silicones used for low-temperature curing release paper.

Series of Investments

Under Shin-Etsu’s newly announced silicones investment plan, the company will make new investments in its Naoetsu Plant in Japan’s Niigata as well as in its Takefu Plant in Fukui. In addition, it will also boost its investments in its Thailand plant.

These new investments will also reinforce the current one in Gunma Complex in Japan’s Gunma prefecture.

“We will also invest further in our existing silicone plants in other Asian countries, the United States and Hungary. At the same time, we will accelerate our efforts to become carbon neutral by proactively moving forward with greener manufacturing processes,” said Shin-Etsu.

Shin-Etsu Chemical said it remains steadfast in its commitment to the realization of a sustainable society. Particularly, by enhancing its capabilities to rapidly develop and stably supply desirable products that meet the demands of society.

In addition, the company said it wants its customers to take full advantage of Shin-Etsu’s technological strengths in the silicones business. Thus, taking advantage of the company’s know-how cultivated over three-quarters of a century.