Sales and profits growth supports Shin-Etsu silicones plan

Tokyo –  Shin-Etsu Chemical Co. Ltd is investing to strengthen the production and R&D systems of its silicones business unit on the back of continuing growth in the market – both in Japan and overseas.

The Japanese group posted a 5.1-percent rise in operating income to ¥33,414 million (€249 million) for the silicones unit segment results for the fiscal year ended 31 March, on net sales of ¥177,438 million –  13.4-percent higher than in the prior fiscal year.

In the domestic market, the silicones business said sales of products for automotive and cosmetics continued to be strong. Business in the electronics equipment sector, it added, improved and the business continued to be firm in a wide range of fields.

Outside of Japan, the silicones business “also generally continued to do well in products for Europe and the US as well as south east Asia and China,” Shin-Etsu also reported..

Shin-Etsu has recently announced plans to increase production capacity of silicone monomer at its Thailand plant in Rayong province by 50 percent – from the present annual production of 70,000 tonne to 105,000 tonnes.

At the same time, silicone polymer production capacity at the Thai facility is to increase by about 40 percent – from 54,000 tonnes to 74,000 tonnes.

Construction of the facilities is scheduled to be completed in 2017, and the investment amount is estimated to be about ¥20 billion.

The expansions are a part of parent group Shin-Etsu’s plans to expand its silicones business in response to growing global demand.

Shin-Etsu added that it intends to set up a new technical centre in New Jersey to meet the US demand for silicone products and work on the development of new applications.

The Japanese chemicals company operates silicone polymer plants in Texas and Ohio, US, the company

Shin-Etsu said that its silicones business had grown in the past few years achieving a market share of over 50 percent in Japan.