Japan’s Shin-Etsu Chemical is spending altogether 20 billion yen ($166 million) to upgrade silicone output at its two Japanese plants by 2017. At the same time, it will establish a research center to develop new applications for its products.

The company, which claims a share of more than 50% of the global silicones market, is expanding into new markets with production bases in Asia, the US and Europe. Shin-Etsu said increasing demand for silicone necessitates strengthening and expanding its facilities at each stage, from R&D and trial production to mass production.

At the Gunma complex, its largest production base in Japan, the company is investing 5 billion yen on construction of a new research building adjoining its existing Silicone-Electronics Materials Research Center. This facility is planned to start up in spring 2016.

Also at Gunma, Shin-Etsu is investing 12 billion yen in new production facilities for small quantities of silicon used in reinforcement. It also will strengthen its integrated system that handles all processes within the complex from R&D to mass production.

Finally, at its Naoetsu plant in Niigata prefecture, the Japanese chemical producer is investing 3 billion yen in a new facility to produce silicone products used in marine paint.