Shintech to Expand Louisiana Plant in United States by $3.4 Billion to Strengthen PVC Supply Chain

Shintech Louisiana LLC announced an investment of $3.4 billion in its facility in Iberville Parish, Louisiana, USA. The project includes the construction of a second ethylene unit, as well as a fourth chlorine and vinyl chloride monomer (VCM) unit, to increase the capacity of polyvinyl chloride (PVC) raw materials.

The company stated that the project is expected to create 163 new direct jobs, with an average annual salary of $117,329—42% higher than the average wage level in Iberville Parish—while also retaining the existing 725 positions. According to data from the Louisiana Economic Development, the project will also generate 655 indirect jobs. The agency supported this investment through fiscal incentive policies.

Pioneering in Louisiana for 25 years

Shintech began operations in Louisiana in 2000 and has continuously upgraded and expanded its facility to meet global demand for PVC and related products. The company stated that this expansion will employ cutting-edge process technologies to reduce environmental emissions per pound of PVC and caustic soda produced, further enhancing its competitiveness.

Shintech Louisiana is a wholly-owned subsidiary of Shintech Inc., headquartered in Freeport, Texas. Shintech Inc. is a leading PVC resin producer in the United States, and its parent company is Shin-Etsu Chemical Co., Ltd., headquartered in Tokyo, which is the world's largest PVC producer.

Ensure stable and cost-effective raw material supply

Yasuhiko Saitoh, President of Shintech Inc., stated in a press release: “This investment aligns with the company’s strategy to ensure a stable and cost-effective supply of critical raw materials for our business. We sincerely thank the State of Louisiana, local government officials, and the surrounding community for their strong support and understanding, which are vital to Shintech’s development and success in Louisiana.”

Over 25 years in Louisiana, Shintech has completed 7 major projects, with a total investment of $9 billion, creating 725 direct jobs and 940 supporting contractor positions. The company is also the largest exporter of container cargo through the Port of New Orleans.

The project will be constructed in phases, starting with the second ethylene plant and the additional caustic soda and vinyl chloride monomer production facilities. The first phase is expected to be completed by 2030.

State government incentive policies facilitate project implementation.

To attract the project's establishment, the state of Louisiana provided Shintech Louisiana a package of incentives, including a workforce development program, and a performance-based grant of $23.5 million tied to equipment investment and infrastructure upgrades. The company will also participate in the state's industrial tax exemption program and the high-quality job program.