Shin-Etsu Chemical Co., Ltd. announced significant investments. These investments will strengthen its pharmaceutical cellulose business. The company will focus on two key locations. These are its subsidiary SE Tylose GmbH & Co. KG and the Naoetsu Plant. The Naoetsu Plant is in Joetsu, Niigata Prefecture, Japan.

In Germany, Shin-Etsu plans a new production facility. This facility will be for the pharmaceutical excipient L-HPC®. It will be built next to the current facility. This development will create a dual production base. The other base is the Naoetsu Plant in Japan. The company targets completion of the new German facility. This should occur within the second half of 2026.

At the Naoetsu Plant, Shin-Etsu will expand its storage capacity. The pharmaceutical cellulose warehouse in the neighboring area will double in size. This expansion aims to strengthen supply capabilities. It will also prepare the company for unexpected situations. Completion of this warehouse expansion is scheduled for the end of 2025.

The total investment for these projects is substantial. Shin-Etsu expects the total amount to reach 10 billion yen. This investment follows a previous announcement in March 2024. At that time, Shin-Etsu Chemical revealed plans to expand production capacity for the pharmaceutical excipient Shin-Etsu AQOAT. Now, the company will also actively invest in high-performance pharmaceutical cellulose. These efforts aim to improve Shin-Etsu's supply system. This reinforces its position as a key pharmaceutical excipients manufacturer.

Shin-Etsu Chemical’s pharmaceutical cellulose has plant-derived origins. It is widely used in the pharmaceutical industry. Applications include tablet coating and as a disintegrant. Its popularity stems from its safety for human consumption.

L-HPC is a pharmaceutical excipient. Shin-Etsu Chemical independently developed it. It functions as a disintegrant for tablets. The company supplies L-HPC® to customers globally, not just in Japan. Worldwide demand for L-HPC® is increasing. This growth is due to its beneficial properties. It can accelerate the disintegration speed of tablets. It also improves the strength of tablets during the manufacturing process.

Shin-Etsu made a strategic decision. They will manufacture L-HPC® in both Japan and Germany. This decision aims to further enhance the stability of the supply chain. It directly responds to customer requests. Customers desired multiple production locations to ensure consistent availability. This dual-base production strategy will provide greater security and reliability for customers worldwide. Shin-Etsu Chemical's proactive investments demonstrate its commitment to meeting the growing global demand for high-quality pharmaceutical excipients. The expansion in both Japan and Europe signifies a long-term strategy to strengthen its position in this critical market.