Shin-Etsu to build new silicone products plant in China

Tokyo – Shin-Etsu Chemical is investing Yen 2.1 billion (€12.4 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 city, about 85km from Shanghai, Shin-Etsu reported 15 May.

The new site will span an area of 40,000m2, double the size of the current plant, and will include a 20,000m2 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 currently "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.