Dow Corning says it is planning to establish a major new industrial plant in China that will produce silicone raw materials.

The company, which is a venture run by Dow Chemical and Corning, will set up a new base in Shanghai.

The plant will be built in conjunction with Wacker-Chemie GmbH of Germany, with Dow Corning chief executive Stephanie Burns expecting it to get underway "before the end of the decade", according to reports on Bloomberg.

Speaking in a television interview in Hong Kong, Ms Burns noted the rapid expansion of the Chinese market.

"We have very strong double-digit growth here in China and have had over the past three or four years," she said.

Dow Corning, the world's largest supplier of silicone, has identified the Chinese construction, automotive and electronics industries as key drivers of growth in the area.

Platinum catalysts are used in the synthesis of a range of silicone products.