Shin Etsu Chemical : to expand its production capacity of optical fiber preform

Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo, President: Yasuhiko Saitoh), will expand its global production capacity of optical fiber ingot (preform), both in Japan and internationally, by investing a total of ¥18 billion.

Presently, Shin-Etsu Chemical is producing preform at three manufacturing bases: Shin-Etsu's Kashima Plant in Kamisu City, Ibaraki Prefecture, Japan and its two subsidiary companies in China, Shin-Etsu (Jiangsu) Optical Preform Co., Ltd. (Shin-Etsu Optical) in Jiangyin City, Jiangsu Province and Shin-Etsu YOFC (Hubei) Optical Preform Co., Ltd. (YOFC Shin-Etsu Optical) in Qianjiang City, Hubei Province.

Shin-Etsu Optical was set up in a joint venture with China's Jiangsu Fasten Hongsheng Group Co., Ltd., and The Netherlands' TKH Group N.V. and it began its operations from 2012. YOFC Shin-Etsu Optical was established in a joint venture with China's Yangtze Optical Fibre and Cable Joint Stock Limited Company and it began its operations from 2017. These three joint-venture partners are all optical fiber manufacturers, and these new facility investments will double the production capacity of each of these two joint-venture companies and enable these three companies to meet the growth in optical fiber demand. The production expansion construction projects of both companies are aimed to be completed in the first half of 2019.

In addition, we will expand Shin-Etsu's Kashima Plant by adding a new wing to its preform plant in order to be ready for the expected increase in future demand. This construction project is aimed for completion in the latter half of 2018.

Shin-Etsu Chemical has been engaged in the production and sales of preform since 1983. It has expanded the business by such means as starting preform production at its Kashima Plant in 2001.

Worldwide demand for optical fiber is expected to grow by more than 10% in the first half of FY 2018, compared to the same period in FY 2017. In future years as well, further optical fiber growth is expected supported by such demand as for applications in 5G (5th generation mobile networks), IoT (Internet of Things), FTTH (fiber to the home) and AI (artificial intelligence). Shin-Etsu Chemical will proactively capture this growth in demand, as it strives to expand its preform business.