TOKYO—Shin-Etsu Chemical Co. Ltd. is expanding its silicone rubber business in Japan and elsewhere, according to a company news release.
In Japan, the chemical company is investing $161.8 million in facilities' expansion and research and development in a bid to strengthen its production “at each stage,” said the company.
The project includes a $40.5 million investment at Shin-Etsu's Gunma complex, its largest production base in Japan, to build a new research site adjoining its existing silicone-electronics materials research centre.
The building is expected to start operations in the spring of 2016.
Furthermore, Shin-Etsu will invest another $40 million at the Gunma Complex to build new facilities to make silicone products in small quantities.
The investment also will improve production capacity for high-demand products used in applications such as automobiles, cosmetics, chemicals and health care.
At its Naoetsu Plant in Niigata Prefecture, Shin-Etsu will invest $24.3 million to set up a new manufacturing facility for silicone products that will be used as a marine paint material.
Each new facility is scheduled to be completed by March of 2017.
As for investment outside Japan, Shin-Etsu said that it had obtained a new industrial land, for about $4 million, adjoining its Thai silicone facilities, where a major production capacity expansion project is on-going.
In addition, in the U.S., Shin-Etsu has established a new technical center in Paramus, N.J.
Shin-Etsu said that it was aiming for double-digit growth in its silicones business.
Shin-Etsu said that it holds more than 50 percent of Japan's silicone market.