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Shintech Announces Capital Investment of $1.25 Billion to Further Bolster Integrated PVC Business


2021.01.27

Shin-Etsu Chemical Co., Ltd. is going to further bolster the production capacity of Shintech Inc. (Chairman and Founder: Chihiro Kanagawa), 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 tons of VCM per year, 380,000 tons of PVC and 390,000 tons of caustic soda per year. Shintech’s production capacity will reach 3.62 million tons of PVC per year, 2.95 million tons of VCM and 1.95 million tons of caustic soda per year 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 tons per year (or an average of 200,000 plus tons per year, 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.

In the U.S., where environmental regulations have been more stringent, Shintech uses its best in class latest technologies to meet environmental requirements. It has established good relationships with both the state and local governments, thus gaining strong support and understanding from local communities. With these track records, Shintech has become a major supply base for PVC and caustic soda rarely seen anywhere else.

(Note 1)

An ingredient that greatly contributes to both reducing greenhouse gas and expanding infrastructure for society and life (Source: Documents issued by The Vinyl Institute of the U.S. and Vinyl Environmental Council of Japan)

 

1. Characteristics of PVC

1) Long product life (weatherability, flame resistance, electric insulation, etc.)

2) Versatility (many kinds of building materials, wire coating materials, sheets, etc.)

3) Contributes to the environment (Details are given below.)

 

2. Contribution to the environment

1) About 60% of the raw materials are salt, which is abundant in the earth.

Low dependence on fossil fuels (petroleum and natural gas) contributes to the effective use of limited resources.

 

2) Heat insulation

PVC plastic windows with excellent heat insulation are effective in saving energy and contribute to the reduction of greenhouse gas emissions.

 

3) Weatherability

Repair costs for preventing rust and corrosion are inexpensive due to excellent weatherability.

In the U.S., three quarters of PVC applications are in infrastructure and construction where the product life is long.

According to data from the Ministry of Land, Infrastructure, Transport and Tourism, Japan, the expected service life of PVC pipes is 40 years.

 

4) Strong and lightweight

PVC building materials are lighter than other materials, which contributes to reducing fuel consumption during transportation and construction.

 

5) Recycling

In Japan, the material recycling ratio of PVC is about 33%, which is higher than that of other plastics.

The industry is also newly working on material recycling of resin windows and other products.

 

For inquiries about this matter, please contact
    • Shin-Etsu Chemical Co., Ltd. Public Relations Dept. Tetsuya Koishikawa
    • TEL: 03-3246-5091, or from outside Japan: 81-3-3246-5091
    • FAX: 03-3246-5096, or from outside Japan: 81-3-3246-5096
    • e-mail:sec-pr@shinetsu.jp
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