Tokyo – Shin-Etsu Chemical’s silicones business has posted higher year-on-year operating income for the financial year ended 31 March, despite a decline in sales.
Segment operating income for the fiscal year grew 5% to Yen61.4 billion (€523 million), on 2.8% lower sales of Yen227 billion, Shin-Etsu announced 28 April.
The business, according to Shin-Etsu, saw higher profits due to an increase in sales volume and a higher ratio of functional products despite a decline in the prices of general-purpose products.
The segment contributes 15% to both Shin-Etsu's overall sales and profits.
In its annual statement, the Japanese materials supplier said it is carrying out “large-scale” expansion of production capacity for silicone monomers and final products at its major sites.
“[We are] striving to expand the supply system and product line-ups for customers worldwide,” said the financial statement.
The company did not disclose further details of the expansion projects but said they will have a total cost of Yen30 billion.