China Expansions: Shin-Etsu to build silicone plant in Zhejiang; BASF invests in expansion of additives plant in Nanjing

Japan’s Shin-Etsu Chemical Co says it has decided to establish a new company, Shin-Etsu Silicone (Pinghu) Co, in Zhejiang Province, China, and construct a new silicone products plant to expand its silicone business.

The new plant will be built in the Dushan Port Economic Development Zone in Pinghu City, Zhejiang Province, which is about 85 km from Shanghai. The site has an area of 40,000 sq m (including 20,000 sq m of land planned for future expansion), which is twice the area of the current plant.

The company began the production of silicone products in 2003 and has maintained a steady supply in response to meet customer and market demands.

At the same time, Zhejiang Shin-Etsu has long been considering increasing production capacity, expanding its product line-up, and updating the plant building and facilities in anticipation of ever-expanding demand in China.

As a result, Zhejiang Shin-Etsu has decided to acquire a site in Zhejiang Province and construct a new plant. The production functions that the current plant in Zhejiang Shin-Etsu has fulfilled will also be transferred to the new plant.

In addition to existing general-purpose silicone emulsion products, the new plant will produce functional silicone emulsions, environmentally friendly silicone products, and other high-functional products, and is scheduled for completion in February 2026. The total investment is expected to reach approximately 2.1 billion yen, including the cost of the land for the project.

Demand for silicones in China is currently in an adjustment phase but is expected to grow further in the medium to long term.

Shin-Etsu Chemical adds it is committed to meeting the diverse demands of the Chinese market by developing and supplying high-value-added silicone products based on its accumulated technological capabilities and know-how.

In other news, German materials firm BASF is investing in the expansion of its advanced additives plant at its Nanjing site. Driven by the rapidly growing market demand in Asia and beyond, this new expansion includes a production line for BASF’s high-performance Controlled Free Radical Polymerisation (CFRP) dispersants. The new line is planned to start up by the end of 2025.

“The new investment in the additives plant in Nanjing will further strengthen BASF’s local production footprint in China, the world’s largest and fastest growing chemical market,” said Jeffrey Lou, President/Chairman of BASF Greater China.

BASF says its commitment to providing performance and formulation additives to the coatings industry is reflected in the continuous expansion of the Nanjing site over the past decade. Today, the Nanjing site has become a powerhouse for the company’s additives in China and the Asia Pacific region, seamlessly integrating manufacturing, technical service, and R&D.

Sylvain Huguenard, Vice President, Global Business Management Additives adds, “Benefits of CFRP technology include strong pigment affinity and excellent flocculation resistance enabled through well-defined polymer structure. For over 20 years, BASF has been supporting customers with cutting edge dispersing agents based on our unique controlled free radical polymers. This investment is a testimony of our commitment towards continuous innovation, supply reliability and sustainability.”

High-performance additives are widely used across industries such as industrial coatings and automotive OEM coatings. The market is constantly demanding more universal and higher performance dispersants to push the limits of reachable colour space with existing pigments.

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