2010 News

Shin-Etsu Chemical to expand sales of silicone products in China

Shin-Etsu is establishing a new Group company and constructing a new silicone plant in a Jiangsu Province Economic Development Zone

Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo, President Chihiro Kanagawa) has announced that it has decided to establish a new Shin-Etsu Group silicones company in Jiangsu Province, China and construct a silicone products manufacturing plant there.

Shin-Etsu Chemical first commercialized silicone in 1953 in Japan. Since then, it has attentively built up its silicone business, and up to the present it possesses the top share of the silicone market in Japan. In addition to Japan, Shin-Etsu has silicone production/sales bases in such countries as the United States, Korea, Taiwan and Thailand and Shin-Etsu has been receiving a high evaluation in the global market due to its superior quality and versatile characteristics.

Until now, in China Shin-Etsu has established a sales company in Shanghai, and we have been selling silicone products that were exported from Japan. However, since demand for silicone products has expanded greatly and strong market growth is expected in the future as well, Shin-Etsu has decided to launch local production of silicone products in China with the aim of expanding its silicone business in the Chinese market.

The new silicone plant on a land area of 150,000m2 is located in an industrial park of the Nantong Economic and Technological Zone of Nantong City, in central Jiangsu Province, about 100km north of Shanghai. The new plant is scheduled for completion at the end of 2011, and will produce a total of 25,000 tons/year of a line of silicone rubber products, such as silicone rubber for molding. The investment amount is about ¥8.5 billion, and this will be Shin-Etsu Chemical's first such large-scale investment in China.

The name of the new company is “Shin-Etsu Silicone (Nantong) Co., Ltd., and the company's sales amount is expected to be about ¥10 billion/year. At the first stage, Shin-Etsu Silicone (Nantong) will mainly manufacture general-purpose silicone rubber. Later on, the product lines will be gradually expanded, and eventually we plan to manufacture a full line-up of silicone products.

Shin-Etsu responds to the market needs with the superior quality honed in the Japanese market, wide varieties of products meeting to customer's requirements and speedy technical support so as to establish a position as a diversified silicone manufacturer in China.

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