Mongolia’s first silicone factory commences operations in Dornogovi Province
The country’s first silicone extraction and processing factory, owned by a subsidiary of Japan’s Megatech Corporation, commenced operations in Saikhandulaan soum of Dornogovi Province in an opening ceremony on July 3.
With the opening, the factory becomes the first of its kind in Mongolia. The factory has the capacity to produce and process 3,600 to 4,800 tons of silicone annually. Megatech intends to export silicone to Japan and eventually to other Asian countries by rail transport through Russia.
The main customers of the silicone will be metallurgy producers in Japan and other Asian countries including China and South Korea. Saikhandulaan soum has an estimated 400-year reserve of silicone. Megatech has underlined that it will increase production and processing capacity in the future. Speaking at the ceremony, Japanese Ambassador to Mongolia Takaoka Masato underlined the importance of the Japan-Mongolia Economic Partnership Agreement in helping mediate and encourage bilateral business cooperation.
“Our company will supply the value-added silicone product as a raw material to metallurgy producers in Japan and to other producers and companies. Moving forward, we have set plans to export to South Korea and China. We began researching silicone production about 10 years ago and we had a choice between Mongolia and Vietnam. The hospitality and hardworking nature of Mongolians coupled with the advanced technology from our side will help make the factory a large competitor on the world stage,” said Shigeru Nagao, chairman and CEO of Megatech Corporation.
In the initial stages, the factory will produce 200 to 400 tons of silicone monthly. In addition to the plant in Saikhandulaan soum, the company is also in the process of constructing an additional processing plant in Sainshand soum.
“The silicone factory will undoubtedly increase jobs and especially jobs for the local community. It will also contribute to the development of the infrastructure, helping improve standard of living. As a Japanese company, we will be making a responsible contribution to society and therefore we are hopeful that the local community will be supportive of our endeavors,” said Nagao.
Specifically, Nagao mentioned about contributions by the company to Dornogovi Province, development of the Saikhandulaan soum, education of local communities, and rehabilitation of the environment. The increased tax revenue and the alternative to silicone imports offered by the factory were also mentioned as upsides by Nagao.
Chairman and CEO of Megatech, Shigeru Nagao was joined by MP G.Munkhtsetseg, Head of the National Development Center B.Bayarsaikhan, Japanese Ambassador to Mongolia Takaoka Masato, and 68th yokozuna Asashoryu Akinori (D.Dagvadorj.)
...The main customers of silicone will be metallurgy producers in Japan and other Asian countries including China and South Korea...