Shin-Etsu Chemical Co., Ltd. has decided to establish a new company, Shin-Etsu Silicone (Pinghu) Co., Ltd., in Zhejiang Province, China. In relation, it will construct a new silicone products plant to expand its silicone business in the country.

Shin-Etsu Chemical established Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. (Zhejiang Shin-Etsu) in Zhejiang Province, China in 2002. Specifically, it aimed to meet the domestic demand for silicone products. The company began the production of silicone products in 2003. Since then, it has maintained a steady supply in response to meet customer and market demands.

Ramp up Production Capacity

At the same time, Zhejiang Shin-Etsu has long been considering (1) increasing production capacity, (2) expanding its product line-up, and (3) updating the plant building and facilities in anticipation of ever-expanding demand in China. As a result, Zhejiang Shin-Etsu has decided to acquire a site in Zhejiang Province and construct a new plant. Also, the new plant will carry out the key production functions of the current plant in Zhejiang Shin-Etsu.

Specifically, the new plant will be built in the Dushan Port Economic Development Zone in Pinghu City, Zhejiang Province, which is about 85km from Shanghai. The site has an area of 40,000m² (including 20,000m² of land planned for future expansion), twice the area of the current plant. In addition to existing general-purpose silicone emulsion products, the new plant will produce functional silicone emulsions, environmentally friendly silicone products, and other high-functional products. It targets to complete the plant construction in Feb. 2026. The total investment is expected to reach approximately 2.1 billion yen, including the cost of the land for the project.

Currently, the demand for silicones in China is in an adjustment phase. However, it is expected to grow further in the medium to long term. Mainly, the company seriously aims to meet the diverse demands of the Chinese market by developing and supplying high-value-added silicone products based on its accumulated technological capabilities and know-how. Through a stable supply of products and advanced production technologies, Shin-Etsu Chemical contributes to the realization of a sustainable society.

-16 May 2024-