Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo) announced today that, both in Japan and overseas, it will increase the price of silicones, one of its main products, effective for shipments made from December 2007. The range of the amount of the increase is 15% to 18%, respectively, product-by-product.

The prices of such key raw materials for silicone products as metallic silicon, methanol, and catalytic raw materials such as platinum have been continuing to rise steeply. In addition, amid the continued soaring of crude oil prices, Shin-Etsu Chemical is faced with an increase in the costs of energy and oil-based solvents for processing raw materials as well as rising costs of packaging materials and transportation. In particular, the price of metallic silicon rose sharply because of the tight worldwide supply-and-demand situation and the increase in electric power demand in its major production areas. Furthermore, the price of platinum has continued to set a record for the highest price levels since the beginning of October due to global concern on supply ability.

So far, Shin-Etsu Chemical has been making all-out company-wide efforts to reduce manufacturing costs by implementing various company rationalization plans.

However, it has become difficult to absorb the entire burden of the increased costs by these efforts only, and unavoidably, it has become necessary to implement a sales price increase.

Silicone is a highly functional resin that has both organic and inorganic characteristics. They are used as products that can provide high-added value in a wide range of industrial fields such as the electrical, electronics, automotive, cosmetics, construction, and chemical industries.