Shin-Etsu applies to build 500,000 t/y ethylene plant in Louisiana

LONDON (ICIS)–Shin-Etsu Chemical’s US subsidiary, Shintech, has applied for construction permits to build a 500,000 tonnes/year ethylene plant in Louisiana, aiming to “assure stable supply” of feedstock to manufacture polyvinyl chloride (PVC), the Japanese company said on Tuesday.

The application has been submitted to the Department of Environment Quality of the US state of Louisiana.

Nevertheless, Shin-Etsu said neither the location nor timings for construction had been decided yet. The potential cost of the project has not been evaluated, either.

However, it said US subsidiary Shintech owns industrial land in Louisiana, placing that space as a “leading candidate” for the site.

“Concurrently with carrying out the required processes to secure a building permit, Shintech will continue its feasibility study with regard to such matters as the amount to be invested for the contemplated plant construction project and the profitability of the project as well as the period of time that will be needed for the construction to be completed,” said Shin-Etsu.

With the move, Shintech deploys further its strategy to get feedstock in-house to integrate the manufacturing of its products, said its Japanese parent company.