Shin-Etsu Chemical: Nikkei Reports Shin-Etsu to Build New Rare Earth Refinery in Japan

研报英文原文证据摘录

Shin-Etsu Chemical: Nikkei Reports Shin-Etsu to Build New Rare Earth Refinery in Japan

Update

June 10, 2026 11:59 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MShin-Etsu Chemical (4063) | Japan Takato Watabe

Equity Analyst

Nikkei Reports Shin-Etsu to Takato.Watabe@morganstanleymufg.comRyoichi Watanabe +81 3 6836-5436

Ryoichi.Watanabe@morganstanleymufg.com +81 3 6836-8929

Build New Rare Earth Refinery Kayoko Shoji

Research Associate

Kayoko.Shoji@morganstanleymufg.com +81 3 6836-5437

in Japan Kano Fujita

Kano.Fujita@morganstanleymufg.com +81 3 6836-8932

We see this as a potential high‑return investment project: The front page of the

Jun 11 Nikkei reported that Shin‑Etsu Chemical plans to build new rare earth

production facilities in Fukui Prefecture. The company has not issued press releases

etc. on the matter. The report indicates the company will invest at least ¥35bn to

establish rare earth refining facilities, of which about ¥17.5bn would be covered by

government subsidies. We believe a key strength of the company’s rare earth Shin-Etsu Chemical (4063.T, 4063 JT)

business lies in its integrated structure, from refining raw rare earth materials Electronic Chemicals | Japan

through to final processing, enabling flexible responses to customer requirements. Stock Rating Overweight

Industry View In-Line

Production currently involves separation and refining in Takefu (Fukui) and Vietnam, Price target ¥8,200

sintering in Takefu and Vietnam, and processing in Malaysia, the Philippines and Shr price, close (Jun 10, 2026) ¥6,695

Mkt cap, curr, basic (bn) ¥12,430.7

Thailand. Rare earth magnets are used across a broad range of applications. In Avg daily trading value (bn) ¥42.8

automotive, they are used in drive motors and generators for environmentally