TOKYO—Shin-Etsu Chemical Co. Ltd. is planning to establish a new silicones production plant in Japan and expand its technical center in a $21.9 million investment.
The company said the new investment was part of its strategy to proactively expand its silicones business, which is one its main business segments. The plant will produce functional silane and will be able to carry out various kinds of small-quantity production.
The facility is scheduled to be completed by March 2018 and is being built on the site of Shin Etsu's Naoetsu plant in Niigata Prefecture.
The plant is expected to produce highly functional materials including resin-modifying silane, used in cars, electric and electronic materials, as well as a silane coupling agent that provides adhesive strength.
In addition to that, Shin-Etsu will expand its silicone rubber molding and processing technical center in Higashimatsuyama City, which it opened in 2001.
The upgrade, expected for July 2017, will take into account recent molding technology advances, including liquid injection molding system.
Shin-Etsu expanded silicones production capacity in Thailand and Japan last year, investing a combined $380 million in the projects.
Also, a new research building was constructed at Shin-Etsu's silicone-electronics materials research center in Gunma Prefecture, Japan, which began operations in the spring.