Shin-Etsu moves to increase earnings at silicone materials unit

Tokyo – Shin-Etsu Chemical’s ‘functional materials’ unit has reported a 4.4% year-on-year increase in operating income for its fiscal first quarter to Yen26.7 billion (€106 million).

Earnings at the division, which includes the Japanese group’s silicones operations, increased despite a 1.3% decline in sales to Yen106.7 billion.

Over the three months to 30 June, ‘functional materials’ was impacted by inventory adjustments and slowdown in commodity markets as “the slump in the Chinese economy continued.”

To offset these effects, the group said it focused on increasing sales of 'highly functional' product groups as well as introducing a price increase for silicone materials.

Other measures during the quarter included “significant and focused promotion of higher silicone product functionality and raising of the level of environmental impact reduction.”

Shin-Etsu said it also carried out "continuous development of highly functional products for automotive, personal care and healthcare applications."

Additionally, the group initiated an investment of €13 million to “strengthen the silicone business in China,” according to its first quarter report issued 26 July.