GE and Shin-Etsu to invest Bht 10,500 million in Thailand silicones plant (2001.2.7)

Bangkok (7 February 2001) - General Electric (GE), together with Shin-Etsu Chemical of Japan, today announced at a press conference attended by Khun Staporn Kavitanon, Secretary-General of the Board of Investment, that they have this morning signed definitive agreements to establish in Thailand a jointly-owned facility to manufacture silane-monomers and siloxanes, the essential materials used in the production of silicone end-products. The plant, with a planned investment of approximately Bht 10,500 million, will be the largest silicones manufacturing plant in Asia. The facility, to be located in Asia Industrial Park, Map Ta Phut, is expected to become operational in 2003, with construction commencing during the third quarter of this year.

Called Asia Silicones Monomer Limited, the joint venture company is owned 50% by a GE and Toshiba business partnership, and 50% by Shin-Etsu Chemical, a major Japanese silicone producer. The project is promoted by the Thailand Board of Investment.

"The demand for silicone products in Asia is expected to grow rapidly in the future. This investment decision marks our confidence in the economic potential of the region, in general, and our belief that Thailand, in particular, is very well situated to play an important part in that future," said Mr. Bill Driscoll, world-wide Vice President and General Manager of GE Silicones. Silicone product manufacture is a highly capital intensive industry requiring advanced technologies to build and operate. According to Mr. Driscoll, the joint investment allows both companies to "build a world-class production facility in a cost-effective way with the latest technologies."

Mr. Driscoll added that "GE's support of the decision to come to Thailand was influenced by the size of GE's existing business in Thailand, as well as confidence in the long-term stability of this country and the capability of its people." He also acknowledged the role of the Board of Investment in attracting the investment into Thailand.

"An investment decision of this magnitude is not made easily, and we looked at many potential countries as a manufacturing base," said Mr. Osamu Hiura, Senior Managing Director and General Manager of Silicones Division, Shin-Etsu Chemical. "With its political and social stability, transportation access and the availability of quality natural gas, we are confident with our investment decision in Thailand."

The plant will have an initial capacity of approximately 70,000 tons of siloxane, making it one of the largest such plants in the world. The plant output will be supplied directly to each of the joint venture shareholders' silicones operations in the Pacific. The manufacture and sale of silicone finished products will continue to be undertaken separately and independently by the two shareholder companies.

The operation will create over 100 new "high-skill" jobs.

Silicone is a man-made material in which organic and inorganic substances are chemically combined. It is an important building-block product for the manufacturing-based economies of the future because of its widespread use across many industries. The material is used in a wide variety of applications such as automobile parts and assembly, personal care and consumer goods, textile, electronic and electric parts, releasing agents and building construction.

GE is a diversified services, technology and manufacturing company with a commitment to achieving customer success and worldwide leadership in each of its businesses.

GE Silicones, a US$1.4 billion operating division of GE Plastics, is a global manufacturer of silicone products with its headquarters in Waterford, NY, USA. It has 3,500 employees and manufactures over 4,000 products for most major applications, including consumer retail, building and construction, health care, electrical/electronics, automotive, aviation, cosmetics, specialty coatings, appliance and textiles. Its Asia Pacific operations are headquartered in Tokyo, and currently operate in 13 Asian countries with over 800 employees through GE Toshiba Silicones, a joint venture with Toshiba Corporation.

Shin-Etsu Chemical Co., Ltd., is a global corporation headquartered in Japan. Its world-wide revenues exceed US$ 6.4 billion, with more than 50% from overseas operations. Shin-Etsu Chemical Co., Ltd. is a major supplier in, among others, the PVC, semiconductor silicon, synthetic quartz, silicones, rare earth magnet, and 'photoresist' businesses. In particular, Shin-Etsu is the world-wide leader in its PVC business, with major operations in Japan, U.S.A., and Holland, as well as in its semiconductor silicon business, with major operations in Japan, U.S.A., Scotland and Southeast Asia. Shin-Etsu Chemical Co., Ltd. has a total of 116 group companies with more than 18,000 employees around the world.

Note to Editor:
Silicones are used across many industries, ranging from such everyday items as household materials, electrical appliances, and cosmetics, to automobiles, construction, and medical equipment. The development of many additional, new applications is also under way. In comparison with other organic materials, silicones have uniquely superior heat resistance, cold resistance, water repellence, and electrical characteristics. In addition, they are available in many forms - oils, gums, resins, and fine particles - and can flexibly meet the demands of various markets.
"Silicone" is a generic term referring to a class of synthetic polymers based on a framework of alternating silicon and oxygen (siloxane bonds), with at least one organic group attached to the silicon via direct carbon to silicon bond.
There is also a similar word "silicon," which refers to a completely different matter - the element "silicon". The element "silicon" is a dark gray metal, of which semiconductor wafers are made.

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