Mobile Navigation

Chemical Engineering

View Comments

Shin-Etsu to expand production capacity in Plaquemine, La.

| By Mary Bailey

Shin-Etsu Chemical Co.  (Tokyo) announced plans to further bolster the production capacity of Shintech Inc., 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 metric tons per year (m.t./yr) of vinyl chloride monomer (VCM), 380,000 m.t./yr of produce polyvinyl chloride (PVC) and 390,000 m.t./yr of caustic soda. Shintech’s production capacity will reach 3.62 million m.t./yr of PVC, 2.95 million m.t./yr of VCM and 1.95 million m.t./yr  of caustic soda 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 m.t./yr (or an average of 200,000 plus m.t./yr, 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 (Note 1). 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.