Shin-Etsu Chemical sets up joint venture in China for the manufacturing and sales of silicone products (2002.6.3)
| Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo, President: Chihiro Kanagawa) has decided to establish a new Shin-Etsu Group company to manufacture and sell silicone products in China. Shin-Etsu has received formal permission from the Chinese government to go ahead with the establishment of the new company. This venture represents the first Shin-Etsu Chemical silicone products manufacturing facility in the People's Republic of China. |
| The name of the new Shin-Etsu Group company is Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. The location of the manufacturing facility is in the Zhejiang Jiashan Economic Development Zone, about 90km south of Shanghai. This new company is the first Japanese corporation to construct a plant in Jiashan County, Zhejiang Province. On June 6, a ground-breaking ceremony was held, and the manufacturing facility is scheduled to start operations at the end of 2002. Including the land cost, the total investment amount is about 400 million yen (US$3 million). At first, the new company will focus on manufacturing and selling various emulsion products, which are silicone derivatives and liquid-type RTV rubber compounds. However, in the coming years, the company aims to significantly expand its range of products. |
| The new company is a joint venture with TOPCO International Company, Limited (Head Office: Delaware in the U.S., President: Chun Chien Wang). The shareholding ratio is: Shin-Etsu Chemical 90% and TOPCO International 10%. In its first year of business operations, the company is projected to attain annual sales of 1 billion yen. |
| Sales of silicone products in the Chinese market are growing every year, and Shin-Etsu Chemical concluded that this was the most appropriate time to set up a local processing plant. |
| This new venture is also expected to play a big role in leading to the development of future Shin-Etsu Chemical business ventures in China. |
Outline of the joint venture |
| Company name |
Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. |
| Location |
Zhejiang Jiashan Economic Development Zone |
| Capital |
US$3 million (about 400 million yen) |
| Shareholders |
Shin-Etsu Chemical Co., Ltd. 90%
TOPCO International Company, Limited 10% |
| CEOs |
President: Hideki Terao
(presently general manager of Shin-Etsu Chemical Co.,Ltd. Overseas Department, Silicone Division)
Vice President: Chun Chien Wang
(presently president of TOPCO International Company, Limited) |
| Business |
Manufacturing and Sales of silicone products |
| Net sales forecast |
1 billion yen/year (at start) |
| Start of operations |
End of 2002 |
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| For inquires concerning this press release, please contact: |
Shin-Etsu Chemical Co., Ltd.
Public Relations Dept.
Ken Nakamura, Tetsuya Koishikawa
Tel: +81-3-3246-5091 |
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