-- Shin-Etsu Chemical's (TYO:4063) additional $3.4 billion investment in its U.S. polyvinyl chloride operation in March has helped it withstand supply shocks better than many rivals who are raising prices or cutting output amid the Middle East turmoil, Nikkei Asia reported on Friday.
While price competition in commodity-grade PVC remains fierce and massive output increases from Chinese suppliers have pushed numerous competitors into losses or plant closures, Shin-Etsu leverages its U.S. geographical advantage, the publication said.
Through its American subsidiary Shintech, the company produces PVC using ethylene derived from U.S. shale gas, which exposes it to less geopolitical risk than oil-derived feedstocks from the Middle East, and enables stable, inexpensive procurement, the news agency said.
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