Denka Performance Elastomer Suspends Operations in Louisiana

News Summary

Denka Performance Elastomer has indefinitely suspended operations at its petrochemical plant in St. John the Baptist Parish, Louisiana, due to financial difficulties and high pollution control costs. The plant, located near New Orleans and surrounded by predominantly Black residents, has drawn scrutiny for its emissions linked to increased cancer risks. Despite efforts to reduce emissions, the plant has consistently exceeded federal guidelines. Local activists see the suspension as a potential step toward improving community health and environmental concerns, amidst ongoing discussions about the facility’s future.

St. John the Baptist Parish, Louisiana – Denka Performance Elastomer has suspended operations at its petrochemical plant indefinitely, primarily due to financial difficulties exacerbated by high pollution control costs. The plant, located about 30 miles northwest of New Orleans, is situated in an area predominantly inhabited by Black residents, who have raised concerns over elevated cancer risks associated with the facility’s emissions.

Denka reported significant financial losses exceeding $109 million in the last fiscal year, citing weakened demand for its products, staffing challenges, and rising operational costs as contributing factors to its struggles. The company has faced increasing scrutiny following the Biden administration’s focus on environmental justice, particularly regarding its emissions of chloroprene, a toxic chemical linked to cancer.

The Environmental Protection Agency (EPA) has imposed federal pollution control measures on Denka, which the company has described as “unfair and targeted.” Under the previous Trump administration, a federal lawsuit alleging cancer risks from the plant’s emissions was withdrawn, leading to a period of reduced regulatory oversight. In 2022, a nearby elementary school was forced to close due to concerns related to emissions exposure, heightening community apprehensions.

Denka produces neoprene, a synthetic rubber found in consumer products such as wetsuits and laptop sleeves. The indefinite suspension of operations comes at a time when the company is facing a “sustained slowdown” in global demand for neoprene, compounded by inflation and supply chain disruptions that have increased costs for key materials. Specifically, Denka has noted a significant rise in expenses for chlorine, essential for chloroprene production, compared to prices experienced in other countries.

The company has invested over $35 million in technology aimed at reducing emissions since acquiring the facility from DuPont in 2015. However, despite these efforts, chloroprene emissions at the plant have consistently exceeded federal guidelines, leading to ongoing concerns within the community.

Following the announcement of the suspension, local activists and community leaders expressed relief, viewing it as a potential step towards cleaner air and an opportunity to address long-standing environmental health issues. The area surrounding the plant is often referred to as “Cancer Alley,” indicative of the significant cancer risks posed by industrial emissions in the region.

Denka has acknowledged support from Louisiana Governor Jeff Landry during its regulatory challenges but has expressed uncertainty about future pollution regulations under the current administration. The company is exploring various options for the facility’s future, including a potential sale, though no decisions regarding permanent closure or workforce reductions have been finalized.

As the situation develops, community advocates remain watchful regarding the plant’s future operations or the possibility of its acquisition by other companies that might continue production. Continuing the push for environmental protections, local activists maintain that corporate profits should not compromise public health, reinforcing their commitment to ensuring a safer environment for residents.

In conclusion, the suspension of operations at Denka’s Louisiana plant highlights the intersection of economic, environmental, and public health issues within vulnerable communities. Ongoing discussions around the facility’s future are expected to unfold as both corporate stakeholders and community members navigate the complexities of pollution control and economic viability.

Deeper Dive: News & Info About This Topic

HERE Resources

Denka Plant Suspends Neoprene Production amid Financial Struggles
Denka Suspends Operations at Louisiana Facility Amid Health Concerns

Additional Resources

• The Guardian: Louisiana Denka Plant
• Wikipedia: Denka Performance Elastomer
• NOLA: Denka Neoprene Plant
• Google Search: Denka Performance Elastomer
• AP News: Denka & EPA
• Google Scholar: Denka Plant Cancer Alley