Shin-Etsu Chemical Plans Major Expansions of Methylcellulose Production Capacity in Japan and Germany
Shin-Etsu Chemical Company, Ltd. announced plans for major expansions of the company's production capacity for methylcellulose in Japan and Germany. In Japan, the production capacity at Shin-Etsu's Naoetsu Plant (Joetsu-shi, Niigata-ken) will be increased from 20,000 tons per year to 23,000 tons per year. In Europe, the production capacity of SE Tylose, a 100% subsidiary of Shin-Etsu Chemical, will be increased from 27,000 tons per year to 40,000 tons per year.
The expanded operations are scheduled to start in Japan at the end of this year and in Germany during the third quarter of 2006. The combined investment for the two projects is projected to be about yen20 billion (U.S.$ 190 million).
The decision to expand production capacity at this time was made because sales in major uses such as construction materials and pharmaceuticals are projected to have steady growth. In addition, new applications are expected to accelerate the overall demand for methylcellulose.
With the expansions Shin-Etsu Chemical's total methylcellulose production capacity will be increased from 47,000 tons per year to 63,000 tons per year. With the establishment of SE Tylose in Germany, the Naoetsu plant shifted its focus to growth in value-added applications for industries such as pharmaceuticals in both the Japan and global markets. The latest expansion in Naoetsu will establish a system of production for a variety of small volume products while also strengthening its Good Manufacturing Practices (GMP). Simultaneously, the plant will be able to meet customer's growing meets in pharmaceutical and other applications.
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