Shintech Announces $1.3B Expansion for Plastics Facilities

Addis M3BATON ROUGE — Shintech Louisiana LLC – a global company that manufactures polyvinyl chloride resins (commonly known as PVC) – has announced it will invest $1.3 billion to expand its manufacturing and packaging facilities in Iberville and West Baton Rouge parishes. Shintech, headquartered in Houston, is a wholly owned subsidiary of Japan-based Shin-Etsu Chemical Co. Ltd.

Louisiana Economic Development, the agency charged with bringing new business and investment to the state, said the company will make a $1.25 billion investment to increase PVC manufacturing capacity and expand chlor-alkali and vinyl chloride monomer capacity at its manufacturing facility in Plaquemine. The company will also expand its PVC packaging and warehouse operation in Addis.

In Plaquemine, Shintech’s manufacturing expansion will create 30 new direct jobs with an average annual salary of $86,000, plus benefits, according to LED, which estimates the project will result in 129 new indirect jobs, for a total of 159 new jobs for Iberville Parish and the Capital Region.

LED said Shintech, which is headquartered in Houston, will retain 530 existing jobs at the Iberville and West Baton Rouge facilities where the company has operated since 1999. The company expects the expansion project to create up to 2,400 constructions jobs. Construction is expected to be completed toward the end of 2023.

“Louisiana’s competitive business environment remains supportive of our major manufacturing sectors,” said Louisiana Gov. John Bel Edwards. “Our skilled workforce and world-class infrastructure continue to set the stage for significant manufacturing expansions. As Shintech reaffirms its confidence in Louisiana’s economic strengths, we welcome the company’s latest investment in Iberville and West Baton Rouge parishes.”

LED said the company is expanding its facilities to keep pace with the demand for PVC, which is used in a variety of applications in the building and construction industries as well as health care, electronics, automobile and other sectors.

“Shintech continues to invest in and increase its manufacturing presence in the North American market,” said Vice President of Manufacturing Danny Cedotal. “We appreciate the company’s confidence in our local manufacturing team. The jobs and infrastructure the company has built in Plaquemine and Addis continue to create much-needed economic development in our communities. We are grateful for the support of neighbors and our community, and we work every day to continue our commitment to live locally, hire locally and buy locally as the company’s footprint grows.”

LED said it began discussions with Shintech about the potential expansions in 2020. The incentive package includes a performance-based grant of up to $6.6 million for the construction, procurement and installation of infrastructure to support the expansion project. The grant is payable in four installments, contingent upon the company reaching investment and production benchmarks. The company also is expected to use Louisiana’s Quality Jobs and Industrial Tax Exemption programs.

Shintech said it has invested more than $7 billion in its Louisiana operations in Iberville and West Baton Rouge parishes.

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