Shin-Etsu Chemical makes first investments in Vietnam establishing two production bases
Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo, President: Shunzo Mori) has established its first two Shin-Etsu Group companies in the Socialist Republic of Vietnam: Shin-Etsu Electronics Materials Vietnam Co., Ltd. for the manufacturing of silicone-based materials for high-brightness LED packaging and Shin-Etsu Magnetic Materials Vietnam Co., Ltd. for the separation and refinement of rare earths, which are the main raw materials of rare earth magnets. The total investment amount for setting up both companies is ¥5 billion (¥3 billion for materials of high-brightness LED packaging and ¥2 billion for the separating and refining of rare earths). The former company is scheduled to start operations in March 2013 and the latter company in February 2013.
This is the first time that the Shin-Etsu Group is setting up production bases in Vietnam. By having production bases in Vietnam, Shin-Etsu can take advantage of the demand in Vietnam and its neighboring countries where economic growth is also expected in the future. In addition, in view of its excellent workforce with its high level of education and diligent national character and the country having the infrastructure that is necessary for manufacturing, we came to the conclusion that Vietnam is the most suitable country in which to make this investment.
1) Shin-Etsu Electronics Materials Vietnam Co., Ltd.
Shin-Etsu Chemical has been continuously putting on the market new silicone-based products for LEDs, including silicone encapsulating materials for high-brightness LED packaging, silicone reflector materials and protective film materials that easily convert the wavelength of light. Shin-Etsu is the world’s top maker in these product fields.
In Asia, many plants for LED-based products are located in each country, and because significant growth is expected both in the mid- and long-term, Shin-Etsu has now decided to produce silicone encapsulating materials and reflector materials in Vietnam. In addition, at this production base, going forward we plan to successively add new products for LED packaging materials and expand their production. By building a new production system in the regional area where demand is, Shin-Etsu will be able to take better advantage of the rising demand in the Asian market, which is the most vigorous in the world market. Moreover, because Shin-Etsu will achieve the dispersion of risk through the establishment of plural production bases, together with Shin-Etsu’s Gunma Complex (Annaka-shi, Gunma prefecture), it will further strengthen the Shin-Etsu Group’s world’s No.1 position in the business of materials for LED packaging.
Outline of new company for manufacturing materials for high-brightness LED packaging
|1. Name:||Shin-Etsu Electronics Materials Vietnam Co., Ltd.|
|2. Location:||No. 2 Thang Long Industrial Park, Hung Yen Province, Vietnam|
|3. Site area:||50,000 m2|
|4. General Director:||Akio Fukada|
|5. Main business:||Manufacturing and sales of silicone-based encapsulating materials and reflectors for LEDs|
|6. Start of Operations:||Scheduled for March 2013|
2) Shin-Etsu Magnetic Materials Vietnam Co., Ltd.
Up until now, using its own unique technologies, in Japan Shin-Etsu Chemical has been carrying out the separation and refinement of rare earths and the refinement of rare earths from magnet powder that is generated in the rare earth magnet finishing process and also recovered from used magnets. In order to further expand and build up these operations, we have decided to invest in the construction of a new rare earth separation and refinement plant in Vietnam.
At this new separation and refinement plant in Vietnam, we will first carry out the recovery and refinement of rare earths from magnets derived materials. Then, going forward, we will make feasibility studies with regard to the separation and refinement of rare earth raw materials that are produced in rare earth mines where advances in development are being made in various areas around the world.
Outline of new company for the separation and refinement of rare earths
|1. Name:||Shin-Etsu Magnetic Materials Vietnam Co., Ltd.|
|2. Location:||Dinh Vu Industrial Park, Hai Phong Province, Vietnam|
|3. Site area:||80,000 m2|
|4. General Director:||Hideyuki Sakashita|
|5. Main business:||Separation and refinement of rare earths|
|6. Start of Operations:||Scheduled for February 2013|
On the occasion of Shin-Etsu Chemical’s decision to set up two production bases in Vietnam, we received a message from H.E. Doan Xuan Hung, Ambassador Extraordinary and Plenipotentiary of Vietnam to Japan. He said, “We welcome the decision of Shin-Etsu Chemical Co., Ltd. to expand into Vietnam. Presently, the Japan-Vietnam relationship is in a very good stage of development and this is a suitable point in time for Japanese companies to come into Vietnam. We wish for your company’s success.”
LED Structure are products that are handled by Shin-Etsu Chemical
Location of two Shin-Etsu Group companies in Vietnam
For inquiries about this matter, please contact
- Shin-Etsu Chemical Co., Ltd. Public Relations Dept. Tetsuya Koishikawa
- TEL: 03-3246-5091, or from outside Japan: 81-3-3246-5091
- FAX: 03-3246-5096, or from outside Japan: 81-3-3246-5096