On January 27, Japan’s Shin-Etsu Chemical announced that it would invest 1.29 billion U.S. dollars to build a new plant for general-purpose resin used in housing and water pipes in the United States. Mainly expand its PVC production capacity in Louisiana, and expand its Plaquemine plant's chlor-alkali and vinyl chloride monomer production capacity.
Since the US government and others have adopted economic stimulus measures under the new crown epidemic, investment in housing and infrastructure has been very active. Shin-Etsu Chemical will respond to this demand through this move. It is expected that the new US Biden administration will stimulate the economy through large-scale fiscal deployments, and direct investment in the United States that has been sluggish due to the spread of the epidemic may be restarted.
The base is currently building a polyvinyl chloride plant with an annual production capacity of 290,000 tons, which will be put into operation in the summer of 2021 at the earliest. It is decided to build a new plant before its completion.
In response, Shintech will also expand the PVC packaging and warehouse operations of its Addis facility. "Shintech continues to invest and increase its production capacity in the North American market." said Danny Sedotal, the company's vice president of production. Louisiana has provided Shintech with a grant of up to 6.6 million U.S. dollars for infrastructure construction, procurement and installation to support the expansion of the project.
