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Shintech Backs UP-NS Merger, Citing Single-Line Service Benefits

The largest U.S. polyvinyl chloride manufacturer has thrown its support behind the proposed Union Pacific-Norfolk Southern merger, diverging from chemical industry groups that have opposed the deal. Shintech relies entirely on Union Pacific for its rail transportation across three plants. The company's president told federal regulators that a combined UP-NS railroad would enable single-line service to eastern markets, reducing costs and improving supply chain efficiency. Shintech highlighted Union Pacific's investments in Gulf Coast carload infrastructure and storage-in-transit yards near its Louisiana operations. The merger would strengthen the company's competitive position in domestic and global markets, the executive stated. However, railroad industry observers warned the combined entity could harm short-line operators and limit market competition.