Shintech to build $1.49bn PVC production plant in Louisiana

25 Jul 2018 NORTH AMERICA BUILDINGS

Shintech, a subsidiary of Shin-Etsu Chemical, has commenced construction on a new integrated polyvinyl chloride (PVC) production plant in the US state of Louisiana.

Estimated to cost $1.49bn, the new facility is being built on industrial site, which is located next to the company’s existing plant in Plaquemine, Louisiana.

The plant will have a capacity to produce 860 thousand tons per year of vinyl chloride monomer (VCM), the raw material of PVC, and 660 thousand tons per year of caustic soda.

The first phase will increase production capacity by 290 thousand tons of PVC per year and 270 thousand tons of caustic soda per year.

Construction on the plant is set to be completed by the end of 2020.

Upon completion of the first phase, the plant will an annual capacity of 3,240 thousand tons of PVC and 1,570 thousand tons of caustic soda.

In 1974, Shintech commenced PVC production in Texas and owns a vast amount of property in Plaquemine, Louisiana.

“When Shintech decided to construct an integrated production facility for PVC in Louisiana in 2004, very few expected that shale gas and shale oil would turn around the energy and feedstock situation in the U.S the way it turns out today. The advancement of shale gas and shale oil thereafter in the U.S. has been astonishing.

“At present, ethylene using local natural gas as a raw material has established its competitive advantage in comparison with ethylene using highly priced crude oil as a raw material, and this has boosted Shintech's competitiveness in terms of procurement costs,” Shintech said in a statement.

Shintech said that it will leverage the advantage of favorable raw material economics in the US to meet demand in the country and the rest of the world, with plans to further increase its capacity in a timely manner.

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Image: Shin-Etsu Chemical’s Silicone-Electronics Materials Research Center Building in Japan. Photo: courtesy of Shin-Etsu Chemical Co., Ltd.

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