Shin-Etsu Chemical Co., Ltd. (Headquartered in Tokyo; President: Yasuhiko Saitoh) has resolved to form a new entity, Shin-Etsu Silicone (Pinghu) Co., Ltd., in Zhejiang Province, China, and build a fresh plant dedicated to silicone products production, as part of its efforts to grow its silicone business.

Shin-Etsu Chemical founded Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. (referred to as "Zhejiang Shin-Etsu") in Zhejiang Province, China, in 2002 to address the growing need for silicone products in the region. Commencing production in 2003, the company has consistently delivered silicone products to meet the evolving demands of customers and the market.

Simultaneously, Zhejiang Shin-Etsu has been actively exploring ways to enhance its operations, including boosting production capacity, broadening its range of products, and modernizing its plant infrastructure, in anticipation of the growing demand in China. Consequently, the decision has been made to procure a site in Zhejiang Province and build a new facility. The production roles currently undertaken by the existing Zhejiang Shin-Etsu plant will transition to the new facility.

The new facility will be located in the Dushan Port Economic Development Zone in Pinghu City, Zhejiang Province, approximately 85 km from Shanghai. Covering an area of 40,000 m2 (including 20,000 m2 allocated for future expansion), the site is double the size of the current plant. Apart from the existing line of general-purpose silicone emulsion products, the new facility will manufacture functional silicone emulsions, environmentally sustainable silicone products, and other high-performance items. Completion is slated for February 2026, with an estimated total investment of around 2.1 billion yen, encompassing the land acquisition costs for the project.

The demand for silicones in China is currently undergoing a transitional phase, with expectations for continued growth in the medium to long term. Shin-Etsu Chemical remains dedicated to catering to the evolving needs of the Chinese market by innovating and delivering high-value silicone products, drawing upon its extensive technological expertise and knowledge. By ensuring a consistent supply of products and employing cutting-edge production methods, Shin-Etsu Chemical actively contributes to the achievement of a sustainable society.

The development of Shin-Etsu Chemical's silicones business in China has been marked by significant milestones over the years. In 2002, Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. was established, focusing on the production and sales of silicone products. The following year, in 2003, Shin-Etsu Silicone International Trading (Shanghai) Co., Ltd. was founded, primarily engaged in the sales of silicone products. As the business expanded, in 2007, the Guangzhou Branch of Shin-Etsu Silicone International Trading (Shanghai) Co., Ltd. was inaugurated, further strengthening its sales operations. Recognizing the growing demand, Shin-Etsu Silicone (Nantong) Co., Ltd. was established in 2010, dedicated to both production and sales of silicone products, solidifying Shin-Etsu Chemical's presence and commitment to the Chinese market.