Dive Brief:
- Shintech, the world’s largest producer of polyvinyl chloride, plans to spend $3.4 billion expanding production capacity at its existing facility in Iberville Parish, Louisiana, the company said last week.
- The project will be done in phases, beginning with construction of a second ethylene unit and a fourth chlor-alkali and vinyl chloride monomer production unit, according to a news release. The first phase is expected to be completed in 2030.
- The site expansion is expected to create 163 direct jobs and retain 725 current positions. Louisiana offered an incentives package to secure the project in Plaquemine, including a $23.5 million grant tied to equipment investments and infrastructure improvements. Shintech is also expected to participate in the state’s industrial tax exemption and job creation rebate programs.
Dive Insight:
Shintech, a subsidiary of Tokyo-based chemical company Shin-Etsu, has operated in Louisiana since 2000, when it established its first PVC plant in Addis, according to its website. The company has since invested some $9 billion expanding its operations in the state. It started chlor-alkali and vinyl chloride monomer production at Plaquemine in 2008, and the site has undergone four expansions over the past 16 years.
“This new project will strengthen our competitive position by deploying best-in-class technologies and continue to drive local investment for many years to come,” Danny Cedotal, Shintech’s VP of manufacturing, said in a statement.
The Plaquemine site has the capacity to produce 3.64 million tons of PVC resin per year, according to Shin-Etsu’s latest annual report. These resins are used in a host of products, such as plumbing and construction pipes, vinyl floors and soft synthetic leather, according to the Vinyl Institute trade organization.
The site’s annual production capacities will increase by 625,000 tons for ethylene, 500,000 tons for vinyl chloride monomer and 310,000 tons for caustic soda as part of the expansion, Shin-Etsu said in a separate news release. The company is looking to meet growing global demand for PVC and related materials over the next five years.
The Plaquemine expansion is expected to bring “advanced, lower-emissions manufacturing technology” to the site and create thousands of construction jobs, Shintech said in the release. The Houston-based PVC maker is a leading exporters through the Port of New Orleans and one of the largest tax payers in Iberville Parish.
Shintech has faced backlash from environmental groups and local residents for its operations and expansions in Louisiana. Its facilities are located in “Cancer Alley,” an 85-mile stretch along the Mississippi River between Baton Rouge and New Orleans. This area is home to some 200 fossil fuel and petrochemical production plants that process about 25% of the nation’s petrochemical products, increasing cancer risks for nearby residents, according to Johns Hopkins University report.
Shintech said it plans to keep using its training program to prepare local residents in the region to meet hiring needs.
“We will continue to operate safely, listen to community concerns, share information and be a responsible neighbor,” Cedotal said.
