The opening ceremony of the Watermelon Lantern Cultural Festival and Investment and Trade Fair, Pinghu, Zhejiang, China 2023 proceeded as planned on the afternoon of September 21st. During the event, a total of 60 major project contracts were signed, with a combined investment value reaching RMB 24.28 billion. Notably, Shin-Etsu Chemical Industry Co., Ltd. (Shin-Etsu as referred to hereinafter) from Japan invested a significant amount of $ 20 million US in the development of a new organosilicon material product project located in Dushan Port Economic Development Zone, Pinghu Town.
The official website of Shine-Etsu announced on September 28th the establishment of the "Organosilicon Sustainable Business Development Department" at its headquarters. This department will be responsible for marketing environmentally friendly organic silicon products, as part of Shin-Etsu's Yen 100 billion of investment in the organic silicon business announced on July 27th this year. There is a high expectation for eco-friendly silicone products, and their demand is expected to increase in a society that strives for sustainable development. By promptly addressing these demands, developing new products, and establishing efficient production and supply chains, Shin-Etsu aims to create new production lines that will stimulate the growth of its silicone business.
Business Service
In September 2018, Shin-Etsu announced its plan to invest Yen 110 billion in the organic silicon business, aiming to enhance the production capacity of intermediate raw material silicone monomers at two bases in Japan and Thailand. This investment is approximately 1.5 times higher than the previous generation. On July 1st, 2021, the company further revealed that it would earmark a total of Yen 20 billion (approximately RMB 1.2 billion) for its organic silicon business with the objective of reducing greenhouse gas emissions and contributing to carbon neutrality.
First, it is to reduce greenhouse gas emissions during the company's production process. At the factory in Gunma Prefecture, which is the main factory of Shin-Etsu's organic silicon business, they are committed to increasing our electricity self-sufficiency rate and reducing greenhouse gas emissions by 14% compared to the current level. They have allocated an investment amount of Yen 10 billion for this measure. Second, it will help reduce greenhouse gas emissions during customer manufacturing while also enhancing our product supply capacity. Additionally, it will increase the supply capacity of products that contribute to environmental sustainability, such as modified silicone fluid, rubber, and heat dissipation silicone materials. This investment amounts to Yen 10 billion and will be implemented at the Gunma factory.
On February 16, 2022, Shin-Etsu announced to further expand its core business in the silicone industry by investing over Yen 80 billion. It aims to enhance the production capacity of various oil-based, resin-based, and rubber-based final products. Additionally, it will implement measures and advanced technologies to minimize the impact upon the environment. These include introducing energy-saving silicon rubber molding equipment that eliminates the need for secondary vulcanization, thereby improving productivity. Furthermore, prototype equipment for LED-related micro-materials will also be introduced. The investments primarily focus on upgrading facilities at Gunma Factory (Anzhong City, Gunma Prefecture), Wufu Factory (Echizen City, Fukui Prefecture), and Naoetsu Factory (Joetsu City, Niigata Prefecture). The goal is to complete these upgrades and commence operations in turns by 2025.
