Westlake Chemical is proceeding with the chlor-alkali plant at its vinyls manufacturing complex in Geismar, US.
The proposed plant is estimated to annually produce 250,000 electrochemical units (ECU), doubling Westlake's ECU production capacity to 525,000 units per year.
The basic chemical manufacturer said it is planning to invest between $250-300m in the plant.
The project was first announced two years ago but the construction was delayed due to the economic slump, the company said.
The chlor-alkali plant is expected to start-up in the second half of 2013 and help Westlake achieve chlorine integration as part of its vertical integration plan.