The silicone products manufacturing plant of Zhejiang Shin-Etsu High-Tech Chemical Company, which was recently constructed in China's Zhejiang Province, began manufacturing operations in May 2003. As Shin-Etsu Chemical's first silicone products manufacturing facility in the People's Republic of China, the plant will also take on the role of a touchstone for the Shin-Etsu Group's future business development in China.

This new Shin-Etsu Group company, which is manufacturing and selling silicone products, was established as a joint venture between Shin-Etsu Chemical Co., Ltd. and TOPCO International, Limited in June 2002. (The shareholding ratio is: Shin-Etsu Chemical 90% and TOPCO International 10%.) The ground-breaking ceremony for the new facility was held on June 6, 2002, and the construction of the plant had been under way since then.
Full commercial production of silicone emulsion products for which demand is expected to expand in the Chinese market and liquid-type RTV rubber started from the end of May 2003. The new company plans to significantly expand the range of products it manufactures in the coming years.

In addition, in January 2004, Shin-Etsu Chemical will set up a local subsidiary to handle sales in Shanghai. Under this organizational arrangement, this manufacturing and sales system will constitute the two essential wheels that will take the company along the road of strong future development.