Shin-Etsu to invest $695M in silicone expansion

Shin-Etsu Chemical Co. Ltd. has disclosed plans to invest over $695 million (80 billion yen) in expanding silicones production across its production facilities in Japan.

The investment follows another $956 million project in 2018 to increase production capacity for silicone monomers at two plants in Japan and Thailand by about 1.5 times.

"However, because there is very strong demand from customers mainly for advanced functional products, we are going to further increase our production capacity in this business field," the Japanese group said Feb. 16.

The new facility investments will increase production capacity of "highly diversified" types of silicone fluids, resins and rubber end products by 2025, according to Shin-Etsu.

The investments will be implemented centering around plants in Japan, starting with the group's main facility, the Gunma Complex in Gunma Prefecture.

Two other plants in Takefu, Fukui Prefecture, and Naoetsu, in Niigata Prefecture, will be included in the expansion project.

As previously signaled, Shin-Etsu said it will focus on specialty products in order to further strengthen the silicones business.

These will include introducing equipment for molding silicone rubber that does not require post-cure.

The new investment will also see trial production equipment for "Micro LED-related materials," which Shin-Etsu said will improve productivity and save energy.

"We will meet the vigorously increasing demand for these products, and at the same time, we will be able to strengthen our stable supply system," the company said.