Japan's Shin-Etsu to invest $3.4 bn in Shintech capacity expansion

10 Mar '26

2 min read

Japan's Shin-Etsu to invest $3.4 bn in Shintech capacity expansion

Pic: Shutterstock/Garry Quinn

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Shin-Etsu Chemical Co. Ltd. will invest $3.4 billion to expand integrated production at subsidiary Shintech Inc. in Plaquemine, Louisiana, adding a second ethylene unit and new chlor-alkali and VCM plants.
The expansion will raise annual capacity by 625,000 tons of ethylene, 500,000 tons of VCM and 310,000 tons of caustic soda.
Construction is scheduled for completion by the end of 2030.

Shin-Etsu Chemical Co., Ltd. is going to further bolster its integrated production capabilities of Shintech Inc, its subsidiary in the U.S. The investment in this phase includes the second ethylene production unit, and the fourth chlor-alkali and vinyl chloride monomer (VCM) production plants at its existing site in Plaquemine, Louisiana. The decision aligns with Shintech’s strategy to ensure reliable and cost-effective supply of key feedstock for the PVC Business, strengthening its position in the global markets. While pursuing this undertaking, Shintech continues to evaluate the PVC markets for next step.

The annual production capacities will be increased by 625,000 tons for ethylene, 500,000 tons for VCM and 310,000 tons for caustic soda. The amount of the investment is expected to be $3.4 billion. The completion of the construction is slated toward the end of 2030.

The worldwide demand for PVC is expected to increase by an average of 750,000 plus tons per year over next five years. As for caustic soda, the worldwide demand is expected to increase by an average of 1,300,000 plus tons per year over next five years. Demand for PVC will grow as it greatly contributes to both environmental impact reduction efforts and infrastructure building for human life and society. Demand for caustic will grow as it will not only serve diverse needs in daily human life but also serve new applications in batteries, critical mineral productions and so on. By leveraging favorable raw material availability and economy of scale, Shintech will further expand and enhance business relationships with customers in the United States and around the world, which Shintech has cultivated with meticulous care and service.

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, and gained 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.