Shintech further strengthening its PVC integrated production system starting from raw materials
Shintech, Shin-Etsu Chemical’s 100%-owned Group company in the U.S., has decided to build its No. 2 Plant in Plaquemine, Louisiana that will carry out production of raw materials for PVC, and construction of the plant has begun. The production capacity of the No. 2 plant will be 800,000 tons/year of vinyl chloride monomer and 530,000 tons/year of caustic soda. The completion of the construction of this new plant is aimed for 2011.
Shintech already possesses about 7,000 acres of vast industrial-use land in the State of Louisiana. At this industrial-land site, the first-phase construction of the No. 1 plant that carries out the integrated production of PVC from raw materials, began operation in October 2008. Presently, the second-phase construction of the No. 1 Plant is going forward, and operation is scheduled to begin in the latter half of 2010. When the second-phase construction is completed, the production capacity of the No.1 plant will be 530,000 tons/year of caustic soda, 800,000 tons/year of vinyl chloride monomer and 600,000 tons/year of PVC.
Under the new expansion project on the land located next to the No. 1 Plant, Shintech will construct its No. 2 plant that will carry out the production of raw materials for PVC. When the No. 2 plant is completed, the total production capacity of the Plaquemine Plant will become 1.06 million tons/year of caustic soda, 1.6 million tons /year of vinyl chloride monomer and 600,000 tons/year of PVC.
Since it began its operation in 1974, Shintech has been purchasing the raw material of PVC, vinyl chloride monomer from its reliable partner, The Dow Chemical Co. In 2008, Shintech renewed its purchasing contract for vinyl chloride monomer with Dow Chemical and will continue to receive supply of this raw material from Dow in the future as well. At the same time, Shin-Etsu is strengthening its integrated PVC production system, which will enable the company to produce vinyl chloride monomer on its own. As a result, having a multiple number of raw material procurement sources will further strengthen Shin-Etsu’s global competitive power in the PVC business.
Shin-Etsu Chemical is the world’s largest PVC manufacturer, and Shintech plays the key role in Shin-Etsu Chemical’s global PVC business strategy. Shintech will steadily set up the necessary systems to further strengthen its business base.
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