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Shin-Etsu Chemical setting up new silicone products facility in China

Japan’s Shin-Etsu Chemical has announced plans 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.

In 2002, Shin-Etsu Chemical had set up Zhejiang Shin-Etsu High-Tech Chemical Co. Ltd. in Zhejiang to meet the demand for silicone products in China. The company began production of silicone products in 2003.

For some time now, Zhejiang Shin-Etsu had been considering expansion of its capacity and product line-up in anticipation of growing demand in China. The company will now acquire a site in Zhejiang 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 kms 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-bn yen ($13.4-mn), including the cost of the land for the project.

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