HOUSTON (CNI)--Shintech said Monday it has obtained an air quality permit from the State of Louisiana, opening the door for construction of its controversial 589 836 tonne polyvinyl chloride (PVC) plant there with completion by the fourth quarter 2001.
Noting the growing levels of competition in PVC, Shintech said in a statement that its new plant, plus its planned acquisition of Rovin will strengthen its position as the world's largest producer of PVC.
Shintech is the Houston-based subsidiary of Tokyo, Japan's Shin-Etsu Chemical. It plans to build the new plant in Addis, near Baton Rouge, Louisiana.
With addition of the Addis plant and conclusion of the Rovin acquisition, Shin-Etsu will have expanded its global PVC capacity to 3.1m tonne/year of PVC by the end of 2001, the company said.
It also noted that it will try to complete the Addis plant as quickly as possible "in order to meet the steady increase of PVC demand in the US."
Shintech said: "Mergers and acquisitions are progressing in the PVC industry in the US, such as the merger of the PVC business between Geon and Occidental and Georgia Gulf's acquisition of Condea Vista. On the other hand Shintech is expanding its business through its expanded close business relationship with Dow Chemical."