HA NOI – Japan's largest chemical company Shin-Etsu Chemical said it plans to establish two plants in Viet Nam to produce silicone-based materials and refine rare earths.
The project, which has total investment of 5 billion yen (US$64 million), includes the construction of a factory that will manufacture silicone-based materials for LED lights. The factory will be built on 50,000 sq.m at Thang Long 2 Industrial Park in the northern province of Hung Yen.
The new factory in Viet Nam, which is set to begin production in March 2013, will help Shin-Etsu to take better advantage of rising demand for LED products in the Asian market, the company said in a press release.
The company will also build a refining facility on an area of 80,000 sq.m at Dinh Vu Industrial Park in the northern port city of Hai Phong, where rare earth minerals used in electronics production will be processed.
The 2 billion yen plant in Hai Phong, which is expected to process 1,000 tonnes of rare earth minerals annually, will be Shin-Etsu's first such facility outside Japan and is slated to come onstream in February 2013.
Vietnamese Ambassador to Japan Doan Xuan Hung said Viet Nam welcomes the firm's plans to expand in Viet Nam and stressed that the investment came at a time when bilateral relations between the two countries were strengthening.
With its headquarters in Tokyo, Shin-Etsu Chemical has manufacturing bases in 14 countries around the world. The 86-year-old company boasts the largest global market share for polyvinyl chloride, semiconductor silicon and photomask substrates. - VNS