Japan: Facility Investments Shin-Etsu Chemical to Invest Around 1 Billion Dollars for Silicone Business
The Japan-based company has decided to go ahead with this facility investment as it intends to expand its production capacity for silicone monomer and other related end products not only within the country but its global bases as well.
Japan – Shin-Etsu Chemical Co. will implement close to around 1 billion dollars in facility investments for its silicones business, one of its main businesses. It will expand its production capacity of silicone monomer, the intermediate product of silicones, and various types of silicone fluids, resins and rubber end products at the company’s main bases in Japan and globally. By means of these investments, the company aims to further strengthen its integrated production system, and at the same time, fortify its ability to contribute to issue solutions for its customers.
These facility investments will be implemented in stages over about a period of two-and-a-half years, and the expansion of the production capacity of both silicone monomer and silicone end products will proceed in parallel. The breakdown of investment amounts is expected to be about ¥50 billion for the expansion of production capacity of intermediate products such as monomers, about ¥50 billion for the expansion of production capacity of end products and about ¥10 billion for the expansion of other secondary facilities such as infrastructure and shipping.
The expansion of capacity for silicone monomer will be done at the firm’s existing bases in Japan and Thailand, and in addition to Japan, the capacity expansion for the company’s group of end products will be carried out at its existing bases in six overseas countries.
In view of the requests coming from customers, the demand for silicone products is expected to increase at a rate surpassing that of the average increase in the world’s GDP. In this way, the firm will extensively capture the demand for silicone products for which this kind of steady growth is expected.