Shintech to spend $3.4 billion on expansions at Louisiana PVC plant

Shintech Louisiana LLC announced March 4 that it would spend $3.4 million to build three new units at the company’s existing PVC factory in Plaquemine, Iberville Parish, Louisiana. According to state officials, the project will add a second ethylene unit, a fourth chlor-alkali and a vinyl chloride monomer unit to the company’s existing plant and create 163 new jobs. Those jobs, state officials said, will come with an average salary of $117,329, about 42% above the average wage for Iberville Parish.

Construction on the expansion will take place in a series of phases, the company said, starting with the second ethylene unit: The first phase of the expansion is expected to finish in 2030.

The expansion will reportedly enhance technology used at the plant and implement new chemical processes meant to reduce emissions from caustic soda used to make polyvinyl chloride (PVC). State officials said that improvement in emissions standards sets the company up for continued, sustainable expansion in the area.

To that end, state officials also approved a number of incentives to Shintech for building in the area. The state offered Shintech a $23.5 million performance-based grant tied to promised equipment investments and infrastructure improvements.

What people are saying

“We are pleased to announce our continued growth and investment in Louisiana,” President of Shintech Inc. Yasuhiko Saitoh said. “This investment aligns with Shintech’s strategy to ensure reliable and cost-effective supply of key feedstocks for our business. We are extremely grateful to Louisiana’s state and parish officials and to our neighbors whose strong support and understanding has been integral to Shintech’s growth and success in Louisiana.”

“From energy to advanced manufacturing, Louisiana powers the industries that sustain America’s economy,” Governor Jeff Landry said. “Shintech’s decision to make a $3.4 billion reinvestment after 25 years in our state speaks volumes. This expansion strengthens one of the world’s leading process industries hubs and reinforces Louisiana’s role as a global industrial powerhouse.”

“Shintech’s twenty-one years of investment in Iberville Parish has created economic development in our communities through direct company and contract jobs which support local businesses,” Vice President of Manufacturing for Shintech Danny Cedotal said. “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.”

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