Dow Corning Corp, which specializes in silicone-based technology, opened a multi-million-US dollar silicone rubber plant in east China yesterday to tap rising local demand.

Management declined to reveal a specific investment figure or capacity for the plant in Zhangjiagang, Jiangsu Province, but said it's the company's largest investment in silicone rubber in the past decade.

Featuring excellent weather-proofing ability, a high level of stability to extreme temperatures, good fluid resistance and water-repellency, silicone rubber is increasingly used in industries ranging from consumer electronics and construction to automobiles and power distribution.

Ian Wilson, executive director of formulated products, Dow Corning, said China's spending boom in the power distribution sector provided a potential big market for its products.

"The silicone rubber demand from China's electric utility sector rose more than 30 percent over the past three years, and we expect this to rise even more rapidly in the next five," Wilson said.

The new plant is part of Dow Corning's world-class manufacturing site currently under development, which also includes China's largest facility to manufacture siloxane, or basic silicone materials, as well as downstream finishing plants.

The US$600-million siloxane plant is a joint venture with Germany's Wacker Chemie AG, and completion is expected during 2010.

Dow Corning, a 50-50 venture between Dow Chemical Co and Corning Inc, has invested more than US$470 million in China to date.

China sales have more than doubled over the past five years, according to Tom Cook, Dow Corning China president.

(Shanghai Daily April 23, 2008)