News Summary
Denka Performance Elastomer has suspended production at its Louisiana facility due to significant financial losses totaling $109 million. The plant, which produces neoprene, has faced economic challenges compounded by rising costs, declining production, and regulatory scrutiny over emissions. While the future of the plant remains uncertain, the company is evaluating all options, including a potential sale. Local leaders express concerns about the impact on jobs and the community’s economic health, highlighting the ongoing debate between industrial operations and public health.
LaPlace, Louisiana – Denka Performance Elastomer has announced that it is suspending production at its facility located on River Road between LaPlace and Reserve, Louisiana, amidst significant financial losses totaling $109 million for the fiscal year ending March 31. The company, a subsidiary of the Japanese chemical giant Denka Co. Ltd., is also exploring the potential sale of this facility, which is the only site in the United States dedicated to the production of neoprene, a synthetic rubber used in various consumer and industrial products.
The company attributed its decision to ongoing financial challenges resulting from a combination of rising costs, declining production volumes, staffing issues, and a weakening global market for chloroprene, the primary ingredient in neoprene. Before the suspension, the facility had already stopped operations for regular maintenance. Denka has clarified that while production is currently suspended, a permanent closure has not been determined, and all options—including a sale of the property—are being evaluated.
The Denka plant, which employs around 250 workers, is a key economic asset for St. John Parish, contributing approximately $2 million annually in sales tax revenue. Following the announcement, employees and local leaders expressed concerns about the implications for both job security and the economic health of the region.
The facility has been under intense scrutiny due to its emissions of chloroprene, which has been classified as likely carcinogenic. Approximately 95% of the chloroprene emissions in the United States originate from this plant, leading to health concerns in local communities that are part of an area commonly referred to as “Cancer Alley.” As a response to these environmental concerns, the Biden administration implemented new regulations requiring significant reductions in chloroprene emissions. Such measures have further complicated the operations at the plant, according to Denka.
Community activists, including groups like Rise St. James and Concerned Citizens of St. John, have voiced public health concerns related to the emissions from the facility, emphasizing the long-term environmental damage that has occurred over the years. The complexities of compliance with environmental regulations, along with the economic challenges of rising inflation and repair costs for equipment, have placed additional strain on the facility’s operational capacities.
Despite the challenges posed by both financial and environmental pressures, Louisiana Governor Jeff Landry has expressed support for the facility. He has characterized the environmental regulations as an “attack” on the plant and has championed its economic contributions. Similarly, St. John Parish President Jaclyn Hotard has defended the importance of the plant, suggesting that economic considerations and public health concerns need not be mutually exclusive. Their endorsements highlight a broader debate regarding the balance of industrial activity and community health.
As Denka continues to assess its options, the fate of the plant remains uncertain. The ongoing evaluation will determine whether the facility will resume operations or potentially undergo a change in ownership. The situation underscores the complexities faced by industrial operations in balancing economic viability with regulatory compliance and community health considerations.
Deeper Dive: News & Info About This Topic
- Fox 8 Live
- Wikipedia: Chloroprene
- NOLA
- Google Search: Denka Chloroprene
- WBRZ
- Google Scholar: Denka Performance Elastomer
- L’Observateur
- Encyclopedia Britannica: Chloroprene
- WAFB
- Google News: Denka LaPlace
