Shin-Etsu Chemical is going to further bolster the production capacity of Shintech, its subsidiary in the U.S.

In July 2018, Shintech broke ground in a greenfield site in Plaquemine, Louisiana for a new integrated plant, which is scheduled to be completed in the middle of this year. This construction is the foundation of the new capital project.

The production capacity will be increased by 580,000 tons of VCM per year, 380,000 tons of PVC and 390,000 tons of caustic soda per year. Shintech’s production capacity will reach 3.62 million tons of PVC per year, 2.95 million tons of VCM and 1.95 million tons of caustic soda per year at the time of completion. The amount of the investment is expected to be $1.25 billion. The completion of the construction is slated by the end of 2023. Shintech will start up the addition, assessing the supply and demand of PVC and caustic soda worldwide.

Worldwide demand for PVC has been increasing by an average of 1 million plus tons per year (or an average of 200,000 plus tons per year, excluding the Chinese market) over the past ten years, including forecasts for year 2021.

Demand for PVC is expected to rise further as material of choice which greatly contributes to concurrent progress of greenhouse gas reduction and infrastructure building for human life and society. By leveraging favorable raw material availability and economy of scale, Shintech will further expand and enhance business relationships with customers around the world, which Shintech has cultivated with meticulous care.

In the U.S., where environmental regulations have been more stringent, Shintech uses its best in class latest technologies to meet environmental requirements. It has established good relationships with both the state and local governments, thus gaining strong support and understanding from local communities. With these track records, Shintech has become a major supply base for PVC and caustic soda rarely seen anywhere else.

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