UPDATE 1-Shin-Etsu plans $1.1 bln chemicals plant at US site

* To spend 100 bln yen on new vinyl chloride monomer plant

* Shares end at six-month high
(Adds details, closing share price)

TOKYO, April 5 (BestGrowthStock) – Japan’s Shin-Etsu Chemical Co Ltd
(4063.T: ) said it plans to spend 100 billion yen ($1.1 billion)
to build a new plant to produce vinyl chloride monomer, used in
polyvinyl chloride (PVC) production, sending its shares to the
highest close in six months.

Shin-Etsu is the world’s largest maker of PVC, widely used
to make pipes and construction materials. Its rivals include
Taiwan’s Formosa Plastics Corp (1301.TW: ), Belgium’s Solvay SA
(SOLB.BR: ) and Thai Plastic and Chemicals (TPC.BK: ).

Shin-Etsu aims to shield its PVC operation from possible
fluctuations in raw materials supply by boosting in-house
production of vinyl chloride monomer (VCM), a company spokesman
said on Monday.

It plans to build the new VCM factory, with an annual output
capacity of 800,000 tonnes, at its manufacturing site in the
U.S. state of Louisiana by 2011, doubling the manufacturing
complex’s total VCM production capability to 1.6 million tonnes.

Completion of the new plant will boost the ratio of in-house
VCM in its U.S. PVC manufacturing operation to 60 percent from
30 percent, consequently lowering the amount of VCM it procures
from Dow Chemical (DOW.N: ), the spokesman said.

Shin-Etsu plans to use its own funds to finance the
construction, he said.

Shares in Shin-Etsu ended up 3.8 percent at 5,700 yen, their
highest close since Sept. 25, 2009. The benchmark Nikkei average
(.N225: ) gained 0.5 percent.

Stock Market News

(Reporting by Kiyoshi Takenaka; Editing by Michael Watson)

UPDATE 1-Shin-Etsu plans $1.1 bln chemicals plant at US site