TOKYO (June 27)—Shin-Etsu Chemical Co. Ltd is investing $3 million to establish its first silicone production site in China, the Tokyo-headquartered group has announced. Located in the Zhejiang Jiashan Economic Development Zone, about 55 miles south of Shanghai, the venture is scheduled to start production at year-end. The company initially will supply silicone derivatives and liquid-type RTV rubber compounds but eventually aims to expand its output, Shin-Etsu said. The operation will be run by Zhejiang Shin-Etsu High-Tech Chemical Co. Ltd.-a 90:10 joint venture between Shin-Etsu and minority partner Topco International Co. Ltd, of Delaware. The venture is targeting sales of about $8 million in its first year, according to the Japanese firm.