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Japan-Based Shintech Expands Iberville and West Baton Rouge Parish, Louisiana, Operations

01/27/2021
Shintech Louisiana, the world’s leading manufacturer of polyvinyl chloride resins or PVC, will invest $1.3 billion to expand its manufacturing and packaging facilities in Iberville and West Baton Rouge parishes, Louisiana.

The company will increase PVC manufacturing capacity and expand chlor-alkali and vinyl chloride monomer capacity at its manufacturing facility in Plaquemine, which was announced in 2018 and is expected to be completed this year. The company also is expanding 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. Louisiana Economic Development estimates the project will result in 129 new indirect jobs, for a total of 159 new jobs for Iberville Parish and the Capital Region.

Shintech 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 construction jobs. Construction is expected to be completed toward the end of 2023.

“Shintech continues to invest in and increase its manufacturing presence in the North American market,” Vice President of Manufacturing Danny Cedotal said. “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 began discussions with Shintech about the potential expansions in 2020. The state has offered Shintech 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 utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs. The incentive package includes the comprehensive solutions of LED FastStart – the nation’s No. 1 state workforce development program.

“We are pleased to hear about the announcement of Shintech’s expansion projects in Louisiana,” said President and CEO Brandy D. Christian of the Port of New Orleans. “They have long been one of our top three exporters, a committed and vital component of our growing export business and an innovative partner in the shipment of the plastic resins which make us competitive in the global market. These expansion plans are great for our region, and we appreciate their continued longstanding commitment to Louisiana.”

The company, a wholly owned subsidiary of Japan-based Shin-Etsu Chemical Co. Ltd., is expanding its facilities to keep pace with the demand for PVC, a versatile, durable product used in a variety of applications in the building and construction industries as well as health care, electronics, automobile and other sectors.

“The fundamental importance of investments like these has never been more obvious,” said President and CEO Adam Knapp of the Baton Rouge Area Chamber. “Not only is Shintech investing serious capital into our economy, supporting both full-time and contract construction jobs, but it is also domestically producing critical material utilized by sectors like health care, technology and construction. We celebrate Shintech’s announcements and look forward to working with them on these and future projects in our regional parishes.”

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