Showa Denko K.K (SDK) has established a branch of its subsidiary Shanghai Showa Chemicals Co., Ltd. (SSC) in Wuhan, Hubei Province in China, aiming to strengthen its business to sell high-purity gases for electronics in China.

Semiconductor and flat panel display (FPD) industries are growing rapidly in China due to the Chinese government’s policy for the development of these industries, said SDK in a statement. In the past, the Japanese company shipped all of its high-purity gases for electronics to be used by customers in China from SSC located in Shanghai.

“This time, however, SDK decided to establish a branch of SSC and its warehouse in Wuhan due to the following reasons.

“Firstly, since the laws and regulations concerning handling of hazardous materials including high-purity gases for electronics have been strengthened in China, it became necessary for SDK to ungently establish stable distribution network for high-purity gases which has dispersed warehouses. Wuhan is a good location for a distribution centre to cover major cities in Central China.”

“Secondly, in Central China including Wuhan, there has been successive establishment of large factories to manufacture semiconductors and FPDs,” SDK explained.

SSC’s Wuhan Branch, which commenced operations in March, is the Showa Denko Group’s second base in China to sell and distribute high-purity gases for electronics, next to that in Shanghai. There are many plans in China to newly establish factories to manufacture semiconductors or FPDs in the future. Under these circumstances, the Showa Denko Group will continue enriching its network of bases to sell and distribute high-purity gases for electronics in China, aiming to expand its high-purity gas business in each region of the country and strengthen relations with major manufacturers of semiconductors and FPDs.