Denka Performance Elastomer Plant Suspends Operations Amid Challenges

Categories: Louisiana Business NewsLouisiana ManufacturingLouisiana News

The Denka Performance Elastomer plant is facing operational challenges amid health and regulatory concerns.

News Summary

The Denka Performance Elastomer plant in Louisiana has announced an indefinite suspension of production due to substantial financial losses and regulatory challenges. The sole producer of neoprene in the U.S. reported over $109 million in losses this fiscal year, exacerbated by stringent emissions regulations. The plant’s operations, which employ around 250 workers, have drawn criticism from local communities due to health concerns related to chloroprene emissions. Local leaders advocate for balancing economic development with public health protections as the future of the plant remains uncertain.

LaPlace, Louisiana – The Denka Performance Elastomer plant, the sole producer of neoprene in the United States, has announced an indefinite suspension of production amid substantial financial losses and regulatory challenges. The facility, which was acquired by Denka Co. Ltd., a Japanese chemical company, from DuPont in 2015, has reported a net loss of over $109 million for the fiscal year ending March 31, 2025. The decision to halt operations was formally communicated on May 13, 2025, highlighting a decline in production and increasing operational costs as key factors in this decision.

As of December 2024, the plant employs around 250 workers, and company officials indicated that a “sustained slowdown” in global market demand has significantly affected profitability. Denka’s challenges have been exacerbated by stringent emissions regulations implemented by the Biden administration, particularly concerning chloroprene, the primary chemical emitted by the plant. Concerns over chloroprene arise from its classification as a likely human carcinogen, raising alarming health issues for residents within the vicinity of the plant that are already affected by high cancer rates, leading to the area’s designation as “Cancer Alley.”

The Denka plant is responsible for 95% of chloroprene emissions across the United States, which has drawn considerable criticism from local communities. Residents have voiced health concerns, citing links between the plant’s emissions and respiratory illnesses among the population. The facility has been under scrutiny due to its significant contribution to these public health issues, as local activists demand remediation measures to ensure the well-being of the area’s inhabitants.

Laissez-faire attitudes towards industrial regulations have been evident in Louisiana. Governor Jeff Landry has expressed support for Denka, recognizing its economic contributions—that include approximately $2 million annually in sales tax revenue—but this support has been countered by growing public health concerns. Past disputes between the state of Louisiana and the Environmental Protection Agency (EPA) over the regulation of the plant’s emissions reflect a complex interplay between environmental governance and economic interests.

Since Denka’s acquisition, the company has reported that the financial burden of necessary pollution control measures was an unexpected obstacle. A new pollution ruling targeting chloroprene emissions has imposed strict compliance timelines, placing further strain on the plant’s operations. In light of these circumstances, Denka has indicated plans to transition the plant to a “mothball status,” which entails securing the facility but does not definitively signal a permanent closure.

Despite the plant’s closure, local representatives emphasize the importance of balancing economic development with the urgent need for public health protections. St. John Parish President Jaclyn Hotard has recognized the dual challenges that the Denka plant faces, advocating for solutions that prioritize community welfare. Community activists have strictly urged that any future developments or changes at the Denka facility include assurances for both environmental clean-up efforts and job opportunities in safer industries.

The outcomes related to sales, local employment, and community health will largely depend on how the situation evolves as Denka moves forward with its plans. The future of the Denka Performance Elastomer plant remains uncertain, leaving many residents concerned about both their health and economic viability in a region already struggling with pollution-related complexities.