TOKYO—Shin-Etsu Chemical is investing $13.4 million in a new silicone products manufacturing plant in Zhejiang province, China, where it already operates an existing facility.
Once completed, Shin-Etsu is planning to relocate its existing operations to the new facility, which will be built in Pinghu, about 50 miles from Shanghai, Shin-Etsu said May 15.
The new site will span an area of more than 131,000 square feet and double the size of the current plant. It will include a 65,000-sq.-ft. area allocated for future expansion.
Scheduled for completion in February 2026, the unit will produce various silicone emulsions, "environmentally friendly" silicone products and other 'high-functionality' products.
Shin-Etsu established its Zhejiang Shin-Etsu High-Tech Chemical in Zhejiang in Jiashan county in 2002 and has been producing silicone products at the plant since 2003.
The group said it had been 'long considering' increasing production capacity, expanding its product line-up, and updating the plant "in anticipation of ever-expanding demand in China."
Shin-Etsu went on to explain that demand for silicones in China is "in an adjustment phase" but noted that demand "is expected to grow further in the medium to long term."
In addition to the Zhejiang facility, Shin-Etsu operates another China-based silicones production plant in Nantong, Jiangsu province, which has been in production since 2010.
