News Summary
The Denka Performance Elastomer plant in St. John the Baptist Parish, Louisiana, has indefinitely suspended production due to severe financial losses of $109 million and increased regulatory pressures related to environmental concerns. This decision marks a major change for the plant, which has been pivotal to the local economy. The company is now exploring options for the facility’s future while community concerns about health risks and pollution persist.
St. John the Baptist Parish, Louisiana – The Denka Performance Elastomer plant has suspended all production indefinitely due to severe financial losses and mounting regulatory challenges. The Japanese chemical firm, which produces neoprene, a synthetic rubber, reported a staggering loss of approximately $109 million for the fiscal year ending March 31, 2025. This suspension marks a significant shift for the plant, which has been a prominent player in the local economy since Denka acquired it from DuPont in 2015.
Denka officials attributed the decision to a “sustained slowdown in global market demand” for neoprene and increased regulatory pressures under the Biden administration. These regulations have focused on emissions linked to chloroprene, a chemical identified as a probable human carcinogen, which has significantly influenced Denka’s operations. The suspension of production places considerable uncertainty on the future of the facility, which is located in Louisiana’s “Cancer Alley,” a region notorious for high cancer rates linked to nearby industrial pollution.
The company has begun exploring various options for the future of the site, including a potential sale. Despite spending over $35 million on pollution control technologies and reportedly reducing chloroprene emissions by over 80%, levels of the chemical near the facility are still significantly above federal exposure guidelines, according to Environmental Protection Agency (EPA) readings. This exacerbates existing concerns among nearby communities, primarily composed of Black residents, who have long been affected by chronic air pollution and health risks associated with the operation of industrial plants.
The Biden administration has taken action to implement stricter regulations on emissions of chloroprene, mitigating some of the environmental challenges presented by companies like Denka. Prior to this, attempts by the U.S. Justice Department sought to force Denka to improve its pollution control measures were met with resistance, especially during the Trump administration, which had previously dismissed a lawsuit that aimed to hold the company accountable for its emissions. Environmental justice advocates have continually raised alarms over the health implications for the local community, pointing to the need for regulatory oversight and more stringent controls on pollution.
Residents in the surrounding areas have expressed a mix of concern and cautious optimism regarding the plant’s production suspension. While they welcome the pause, they remain wary of what may come next, including potential changes in ownership and subsequent operational practices. This complex backdrop underscores the long-standing environmental justice battles in the region, which has seen an influx of industrial facilities contributing to deteriorating public health and an increased prevalence of cancer.
Further complicating matters, Denka’s landlord, DuPont, still operates a separate manufacturing facility producing Kevlar nearby. This relationship adds a layer of complexity to the narrative as both companies navigate regulatory challenges and economic pressures. Louisiana Governor Jeff Landry and state officials have stood by the plant, emphasizing its economic contributions while defending its operational presence amidst the ongoing critique from environmental groups. Critics argue Denka’s prioritization of economic interests over health risks reflects a broader challenge in balancing industrial growth with the well-being of local communities.
The Denka facility’s indefinite suspension of production serves as a pivotal moment in the ongoing dialogue about industrial regulation, community health, and the environmental justice movement in Louisiana. As Denka contemplates the next steps for the plant, the stakes remain high for the local residents and the surrounding environment.
Deeper Dive: News & Info About This Topic
- Shreveport Times: Denka Plant Closing
- NOLA: Denka Neoprene and Environmental Justice
- The Guardian: Louisiana Denka Plant
- AP News: Denka and the EPA Lawsuit
- Chemanalyst: EPA Lawsuit Against Louisiana Chemical Plant
- Wikipedia: Environmental Justice
- Google Search: Denka Performance Elastomer Plant
- Google Scholar: Denka Plant Louisiana
- Encyclopedia Britannica: Chloroprene
- Google News: Denka Plant Closure
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
