Tuesday, 24 July 2018 14:30

Good Louisiana economic news: Shintech $1.49B, GDP 2.3%

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Today, two announcements have hit the wires which indicate that a sense of optimism could be coming.

First, a press release measuing $1.49 billion in good news. The second is a statement by Governor John Bel Edwards promoting economic growth this first quarter of 2018 in GDP.

 The $1.49 billion good news story:

Today, Gov. John Bel Edwards and Shintech Louisiana, LLC executives announced the company will invest $1.49 billion to develop a new chlor alkali and vinyl chloride monomer production facility, and expand existing polyvinyl chloride (PVC) manufacturing facilities in Plaquemine. The company is a wholly owned subsidiary of Shin-Etsu Chemical Co., Ltd., the world’s largest PVC producer.

Construction of the expansion is expected to generate 2,000-3,000 jobs and create 120 new direct jobs once completed. Louisiana Economic Development estimates the project will result in approximately 100 new indirect jobs, for a total of 220 new jobs for Iberville Parish and the Capital Region. Shintech has operated in the area since 1999 and currently has 420 local employees at its facilities in West Baton Rouge and Iberville Parishes, where company operations also support more than 500 contractor jobs.

“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.”

PVC is a versatile and durable product used in a variety of applications in the building and construction, health care, electronics, automobile and other sectors. Caustic soda is widely used in industries and utilities. As global market for the products continue to grow, Shintech is expanding facilities to keep pace with demand. The expansion will include development of an integrated PVC manufacturing facility that is expected to be completed in late 2020 and operational in early 2021.

“Today’s announcement represents a growing investment in Louisiana and an increase Shintech’s manufacturing presence in the North American Market. 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,” said Danny Cedotal, Director of Manufacturing for Shintech.  

Yasuhiko Saitoh, President of Shintech Inc. added, “We are pleased to proceed with this project and are going to carry out the construction at full throttle. This investment builds on our local and global sales capabilities and aligns with our long-range plan to leverage our economy of scale in the U.S. for production of PVC and caustic soda. We are extremely grateful to Louisiana state and parish officials and our neighbors whose strong support and understanding has enabled Shintech’s continued growth and success in Louisiana.”

“The Iberville Chamber of Commerce congratulates Shintech on its announcement to invest $1.49 billion in its operations facility in the State of Louisiana and Iberville Parish,” said Executive Director Hank Grace of the Iberville Chamber of Commerce. “With this announcement, Shintech continues to live by its promise to be a great community partner for all of Iberville Parish.

GDP boom

Today, Gov. John Bel Edwards released the following statement on the announcement from the Bureau of Economic Analysis (BEA) that Gross Domestic Product (GDP) grew in the state of Louisiana for the first quarter of 2018 at a rate of 2.3 percent, faster than 35 other states:

“There is no doubt about it - Louisiana’s economy is steadily improving.  For years, budget instability has threatened our state’s future, but those days are behind us.  Today, more Louisianans are working than ever before, we have lowered taxes on the people of our state, and we are working to bring record economic development deals to Louisiana.   This is not mission accomplished, but just one more positive indicator that we are headed in the right direction. It’s critically important for us all to continue to work together to foster an environment where Louisiana can reach its full potential. I’m committed to doing that, and to ensure that our state’s brightest days are ahead of us.”

The analysis from the BEA at the U.S. Department of Commerce is available by clicking here.  

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Read 706 times Last modified on Tuesday, 24 July 2018 14:50

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