Shintech Inc. will spend $1.3 billion to expand its PVC production and related activities at two sites in Louisiana.
Most of that amount will be spent to increase production of PVC resin and related materials in Plaquemine, La., officials said in a Jan. 26 news release. Houston-based Shintech also will expand PVC packaging and warehouse operations in Addis, La.
In Plaquemine, Shintech's manufacturing expansion will create 30 new direct jobs, as well as an estimated 129 indirect jobs in the area. The expansion project also is expected to create around 2,400 construction jobs through 2023. Shintech already employs 530 at the two locations, where it has operated since 1999.
The expansion will add about 840 million pounds of annual PVC production capacity, as well as 1.3 billion pounds of vinyl chloride monomer and 860 million pounds of caustic soda. The project is expected to be completed in 2023.
The expansion announced Jan. 26 is in addition to an expansion announced in mid-2018 that will be completed this year. The previous expansion was a $1.5 billion project that added 640 million pounds of annual PVC capacity and 1.9 billion pounds of VCM.
Manufacturing Vice President Danny Cedotal said in a news release that Shintech "continues to invest in and increase its manufacturing presence in the North American market."
"We appreciate the company's confidence in our local manufacturing team," he added. "The jobs and infrastructure the company has built in Plaquemine and Addis continue to create much-needed economic development in our communities."
Louisiana Gov. John Bel Edwards said in the release that his state's "competitive business environment remains supportive of our major manufacturing sectors."
"Our skilled workforce and world-class infrastructure continue to set the stage for significant manufacturing expansions," he added.
Shintech is expected to make use of Louisiana's Quality Jobs and Industrial Tax Exemption programs for the project. The firm also is receiving a $6.6 million performance-based grant from the state.
Shintech ranks as one of North America's largest PVC makers. The firm is a unit of Shin-Etsu Chemical Co. Ltd. of Tokyo, which ranks as the world's largest PVC maker.