Shin-Etsu Chemical plans to make a total of ¥20 billion in facility investments in Japan, as it proactively focuses on expanding its silicone business


Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo, President, Shunzo Mori) plans to proactively expand its silicones business, one of its main businesses, by implementing facility investments in Japan totaling ¥20 billion.
Silicone is a highly functional material that is used in a wide range of application fields in such industries as electric, electronics, automobile, building construction, cosmetics and toiletries. Shin-Etsu Chemical has been expanding its silicones business by developing and supplying products that meet the wide-ranging requirements of its customers.
As a result, in Japan Shin-Etsu has achieved the growth of this business so that it now holds an over 50% market share. Globally, Shin-Etsu has been carrying out the expansion of its silicones business by setting up production bases in Asia, the United States and Europe.
The objective of the new facility investments in Shin-Etsu’s silicones business in Japan is to strengthen and expand its silicones facilities at each stage, from R&D and trial production to mass production, as it seeks to steadily capture the globally expanding demand for highly functional silicone products.
At Shin-Etsu Chemical’s Gunma Complex, its largest production base in Japan, the company is investing ¥5 billion as it goes forward with the construction of a new research building adjoining its existing Silicone-Electronics Materials Research Center, and is aiming to start its operations in the spring of 2016.
Furthermore, Shin-Etsu has decided to invest another ¥12 billion at the Gunma Complex in order to carry out such projects as the construction of new production facilities that will enable the production of many kinds of silicone products in small quantities and the reinforcement of production capacity for various types of silicone products that are used in fields where demand growth is expected such as automobiles, cosmetics, chemicals and healthcare. The company will also further strengthen its integrated system that handles all processes within the Complex from R&D to mass production.
Moreover, at its Naoetsu Plant in Niigata Prefecture, Shin-Etsu Chemical will invest ¥3 billion to set up a new manufacturing facility for silicone products that will be used as a marine paint material.
With these new investments totaling ¥20 billion for its silicones business, Shin-Etsu will carry out facility investments in Japan and will supply highly functional and high-quality products globally by closely coordinating its research, production and sales capabilities. Each new facility is scheduled to be completed by March of 2017.
As far as investment developments regarding the silicones business outside of Japan, in Thailand, Shin-Etsu obtained for about ¥5 billion new industrial land adjoining its Thai silicone facilities, where a major production capacity expansion project is on-going. In addition, in the United States, Shin-Etsu has established a new Technical Center in the State of New Jersey.
With these bold moves, Shin-Etsu Chemical is moving ahead with investments aimed at the expansion of its silicones business, both in Japan and globally.
Going forward, Shin-Etsu Chemical is aiming for double-digit growth in its silicones business. With its research, production and sales capabilities coming together as one, Shin-Etsu will make these domestic and overseas facility investments to pursue the early development of even stronger dynamic business capabilities and work to achieve its business expansion goals.

For inquiries about this matter, please contact

    • Shin-Etsu Chemical Co., Ltd.
    • Public Relations Dept.
    • Tetsuya Koishikawa
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