(Yicai Global) May 17 -- Silicone products-maker Hoshine Silicon Industry Co. will invest CNY4.4 billion (USD692 million) to build a factory in China's northwestern Xinjiang Uighur Autonomous Region to make greasing agent used in hair products and food.

The factory will to produce 200,000 tons of siloxane per year, said the Zhejiang-based chemical firm in a press release, adding that the construction period is expected to be three years. The exact location will be in Shihezi Economic and Technological Development Zone and the project includes related facilities for sampling silicones by methanol adsorption.

This move will help increase the market share of the company's organic silicon products, the company added.

Siloxanes are mainly used to produce silicone polymers, which are used in hair products to bring shine but also in low-calorie foods as a substitute for oil.

Editors: Emmi Laine, William Clegg