Sets up two new companies, one for the manufacture of
silicone materials for high-brightness LED packaging and the
other for the separation and refinement of rare
earths
Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo,
President: Shunzo Mori) has established its first two
Shin-Etsu Group companies in the Socialist Republic of
Vietnam: Shin-Etsu Electronics Materials Vietnam Co.,
Ltd. for the manufacturing of silicone-based materials
for high-brightness LED packaging and Shin-Etsu Magnetic
Materials Vietnam Co., Ltd. for the separation and
refinement of rare earths, which are the main raw
materials of rare earth magnets. The total investment
amount for setting up both companies is ¥5 billion (¥3
billion for materials of high-brightness LED packaging
and ¥2 billion for the separating and refining of rare
earths). The former company is scheduled to start
operations in March 2013 and the latter company in
February 2013.
This is the first time that the Shin-Etsu Group is
setting up production bases in Vietnam. By having
production bases in Vietnam, Shin-Etsu can take advantage
of the demand in Vietnam and its neighboring countries
where economic growth is also expected in the future. In
addition, in view of its excellent workforce with its
high level of education and diligent national character
and the country having the infrastructure that is
necessary for manufacturing, we came to the conclusion
that Vietnam is the most suitable country in which to
make this investment.
1) Shin-Etsu Electronics Materials Vietnam Co.,
Ltd.
Shin-Etsu Chemical has been continuously putting on the
market new silicone-based products for LEDs, including
silicone encapsulating materials for high-brightness
LED packaging, silicone reflector materials and
protective film materials that easily convert the
wavelength of light. Shin-Etsu is the world's top
maker in these product fields.
In Asia, many plants for LED-based products are located
in each country, and because significant growth is
expected both in the mid- and long-term, Shin-Etsu has
now decided to produce silicone encapsulating materials
and reflector materials in Vietnam. In addition, at
this production base, going forward we plan to
successively add new products for LED packaging
materials and expand their production. By building a
new production system in the regional area where demand
is, Shin-Etsu will be able to take better advantage of
the rising demand in the Asian market, which is the
most vigorous in the world market. Moreover, because
Shin-Etsu will achieve the dispersion of risk through
the establishment of plural production bases, together
with Shin-Etsu's Gunma Complex (Annaka-shi, Gunma
prefecture), it will further strengthen the Shin-Etsu
Group's world's No.1 position in the business
of materials for LED packaging.
Outline of new company for manufacturing
materials for high-brightness LED packaging
Shin-Etsu Chemical Co., Ltd. is a chemical group organized around 3 products family:
- chemical products (52.8% of net sales): polyvinyl chloride, silicones, methanol, methane chloride, cellulose derivatives, caustic soda, silicon, etc.;
- materials for electronic products (40.7%): encapsulation materials made with silicone, resins, adhesives, etc. for semiconductors, LED products, etc.;
- other (6.5%).
Net sales break down geographically as follows: Japan (26.1%), Asia (34.2%), the United States (22.9%), Europe (10.2%) and other (6.6%).