MOSCOW (MRC) -- Shintech will invest USD1.3bn to expand its manufacturing and packaging facilities in Iberville and West Baton Rouge in Louisiana, the US-based polyvinyl chloride (PVC) producer said, said Chemweek.
The company will make a USD1.25bn investment to increase PVC manufacturing capacity and expand chlor-alkali and vinyl chloride monomer capacity in its Plaquemine facility. The expansion was announced in 2018 and is expected to be completed this year.
Shintech is also expanding its PVC packaging and warehouse operation in its Addis facility. The company is expanding to keep pace with the rising demand for PVC, which is used in a variety of applications including, building and construction industries, healthcare, electronics, automobile, and other sectors.
“Shintech continues to invest in and increase its manufacturing presence in the North American market,” vice president of Manufacturing Danny Cedotal said. The state of Louisiana has offered Shintech a performance-based grant of up to ГЫВ6.6m for the construction, procurement and installation of infrastructure to support the expansion of the project.
The grant is payable in four instalments, contingent upon the company reaching investment and production benchmarks.
As MRC informed earlier, Shintech, a subsidiary of Japan's Shin-Etsu, raised PVC contract prices in January by 4 cents per pound (USD88 per tonne). The company previously announced a 3 cents / lb increase in January PVC contracts and is seeking an additional 3 cents / lb hike in February.
According to MRC's DataScope report, last month's SPVC imports to Russia dropped to 0,600 tonnes from 1,600 tonnes in November. High PVC prices in foreign markets and a seasonal decline in demand in the last two months have put serious pressure on import purchases of PVC from Russian companies. Thus, overall imports were 40,800 tonnes in January-December 2020, compared to 50,900 tonnes a year earlier, with PVC from China and the United States accounting for the main reduction in imports. PVC shipments from these countries decreased by almost a third over the stated period.
MRC