May 1, 2012 -- SE-Tylose (SE-Tylose GmbH & Co. KG, Germany), a 100%-owned subsidiary of Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo; President: Shunzo Mori), has decided to establish a manufacturing plant for hydroxyethyl cellulose (HEC) in the U.S.
The production capacity of the new plant will be 9,000 tons/year. The investment amount will be about $120,000,000, and this total amount will be covered by funds in hand. The new plant will be constructed on a lot that is part of the vast land of about 7,000 acres owned in Plaquemine, Louisiana by Shintech, the U.S. subsidiary company of Shin-Etsu Chemical. If appropriate regulatory permits are obtained, SE-Tylose expects to begin construction late this year and start-up operations at the beginning of 2014.
Shin-Etsu Chemical is a comprehensive manufacturer of cellulose derivative products, and Shin-Etsu Chemical’s Naoetsu Plant (Joetsu City, Niigata Prefecture, Japan) and SE Tylose in Wiesbaden, Germany are producing these products. HEC is one kind of cellulose derivative, and it is being produced at SE Tylose. Presently, SE Tylose’s HEC annual production capacity is 16,000 tons. When construction of the U.S. plant is completed, the production capacity of HEC of the Shin-Etsu Chemical Group will become 25,000 tons.
HEC is used mainly for water-soluble coatings for paints and has superior effects in adjusting viscosity, preventing sedimentation of colorants and improving adhesiveness.
Demand for HEC is expected to grow strongly. Being able to use a part of the ideal industrial-use land that Shintech owns will make it possible to develop this business with an eye on future expansion, and this was the decisive factor in deciding to construct the new plant in the U.S.
Furthermore, having two production bases, one in Europe and the other in the U.S., makes it possible to have production in the Euro zone and U.S. dollar zone, and this system offers flexibility in dealing with the effects of foreign exchange fluctuations on the sales of HEC, for which many transactions are in U.S. dollars. Having two production bases also leads to assuring stable supply.
For more information, please visit http://www.shinetsu.co.jp/e/news/s20120501.shtml
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