Louisiana Gov. John Bel Edwards and Shintech Louisiana LLC announced the company will invest $1.49 billion to develop a new chlor alkali and vinyl chloride monomer production facility and to expand an existing PVC manufacturing facility in Plaquemine, LA. The company is a wholly owned subsidiary of Shin-Etsu Chemical Co. Ltd., the world’s largest PVC producer, according to a news release from Louisiana Economic Development (LED).
Through the project, Shintech will create 120 new direct jobs with an average annual salary of more than $81,800, plus benefits. LED estimates an additional 590 new indirect jobs will result in Iberville Parish and surrounding parishes for a total of more than 700 new jobs. Shintech and its affiliates will retain 500 existing direct jobs at the West Baton Rouge and Iberville facilities, where the company has operated since 1999. The expansion is expected to generate up to 3,000 construction jobs at the peak of the building phase.
“Louisiana holds a longstanding reputation as a state where chemical manufacturing operations thrive and are supported by outstanding talent from our universities, our construction companies and our talented process operators and technicians,” Gov. Edwards said. “When this new project is in place, Shintech will have invested $6 billion to deliver the largest integrated complex in the U.S. for producing PVC, vinyl chloride monomer and chlor alkali. Our world-class infrastructure continues to attract global players like Shintech, who are driving the 21st century economy here in Louisiana.”
“Today’s announcement represents a growing investment in Louisiana and an increase in Shintech’s manufacturing presence in the North American market,” said Shintech Director of Manufacturing Danny Cedotal. “We have had great success with our Addis and Plaquemine facilities, none of which would be possible without the support of our neighbors and our community. We are committed to upholding our philosophy of living locally, hiring locally and buying locally in the construction and operation of this expansion.”
To secure the project, the state of Louisiana offered a competitive incentive package that includes comprehensive solutions from the state’s workforce training program, LED FastStart. In addition, the project will qualify for a $1.5 million modernization tax credit to be provided in equal installments over a five-year period. Shintech also is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.
Shintech Louisiana LLC is a wholly owned subsidiary of Shintech Inc., a producer of PVC resins with headquarters in Houston, TX, and a manufacturing facility in Freeport, TX.