Shin-Etsu Chemical to Build a New Plant for Silicone Products in Zhejiang Province, China

TOKYO--(BUSINESS WIRE)--Shin-Etsu Chemical Co., Ltd. (TOKYO: 4063) (Head Office: Tokyo; President: Yasuhiko Saitoh; hereinafter, “Shin-Etsu Chemical”) has decided to establish a new company, Shin-Etsu Silicone (Pinghu) Co., Ltd., in Zhejiang Province, China, and construct a new silicone products plant to expand its silicone business.

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

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. The production functions that the current plant in Zhejiang Shin-Etsu has fulfilled will also be transferred to the new plant.

The new plant will be built in the Dushan Port Economic Development Zone in Pinghu City, Zhejiang Province, which is about 85 km from Shanghai. The site has an area of 40,000 m² (including 20,000 m² of land planned for future expansion), which is 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, and is scheduled for completion in February 2026. The total investment is expected to reach approximately 2.1 billion yen, including the cost of the land for the project.

Demand for silicones in China is currently in an adjustment phase but is expected to grow further in the medium to long term. Shin-Etsu Chemical is committed to meeting 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.