Business Strategy Shin-Etsu Chemical to Invest 694-Million-Dollars to Expand its Silicones Business in Japan

Shin-Etsu Chemical will invest the hefty amount to expand its facilities in order to strengthen its silicones business in view of growing demand. The facility investments will be implemented at its main plant, the Gunma Complex in Gunma Prefecture, as well as the Takefu Plant in Fukui Prefecture and the Naoetsu Plant in Niigata Prefecture, Japan. The firm intends to complete these capacity-expansion projects and begin operations by 2025.

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Shin-Etsu Chemical Co., Ltd.

Tokyo/Japan – Shin-Etsu Chemical will implement over 694 million dollars (¥80 billion) in facility investments for its silicones business, one of its main businesses, with the aim of further expanding and strengthening this business.

As a result of the announcement in September 2018 concerning its facility investment plan of ¥110 billion for its silicones business, Shin-Etsu Chemical increased its production capacity of silicone monomer, the intermediate material of silicones, at its two bases in Japan and Thailand by about 1.5 times, compared to the previous level. The firm has implemented appropriate investments so far in the downstream area of its silicones business. However, because there is very strong demand from customers mainly for advanced functional products, the company is going to further increase its production capacity in this business field as a result of this new facility investment.

Shin-Etsu has already stated that it will strengthen the development of new silicone products and put the emphasis in its products structure on so-called specialty products. This new facility investment plan is aimed at strengthening this business strategy, and the investment amount is expected to exceed 694 million dollars. By these means, the firm will meet the vigorously increasing demand for these products, and at the same time, it will be able to strengthen its stable supply system.

The new facility investments will increase the production capacity of highly diversified types of silicone fluids, resins and rubber end products. In addition, it will go forward with its endeavors toward contributing to the reduction of the environmental impact and to the development of advanced technologies such as by introducing equipment for molding silicone rubber that does not require post cure and by introducing trial production equipment for Micro LED-related materials, which will improve productivity and save energy.

This new series of facility investments will be implemented centering around its plants in Japan, starting with its main plant, the Gunma Complex in Gunma Prefecture, as well as the Takefu Plant in Fukui Prefecture and the Naoetsu Plant in Niigata Prefecture. The firm aims to sequentially complete these capacity-expansion projects and begin operations by 2025.

(ID:48018817)