News Summary
The Denka Performance Elastomer plant in St. John the Baptist Parish, Louisiana, has announced an indefinite suspension of operations due to financial challenges and high pollution control costs. The facility, which produces neoprene, has reported over $109 million in losses amid increased scrutiny over toxic emissions. Local concerns about air quality and health risks have grown, leading to community activism for environmental justice. Denka is considering future options, including the sale of the facility, as it navigates economic and regulatory pressures.
St. John the Baptist Parish, Louisiana – The Denka Performance Elastomer plant in Louisiana has announced the indefinite suspension of its operations, primarily due to mounting financial challenges and the high costs associated with reducing toxic pollution. The facility, which produces synthetic rubber, particularly neoprene, has faced significant scrutiny over its pollution levels, particularly regarding emissions of chloroprene, a carcinogenic chemical.
In the past year, Denka reported losses exceeding $109 million, which have contributed to its decision to halt production. The company has cited a combination of factors leading to this situation, including a sustained decrease in global market demand for neoprene, rising energy prices, supply chain disruptions, and ongoing staffing challenges. Furthermore, Denka has characterized the pollution control measures mandated by the Environmental Protection Agency (EPA) as “unfair and targeted.”
The Denka plant is located approximately 30 miles northwest of New Orleans in St. John the Baptist Parish, an area notorious for severe air pollution issues that have raised alarm in the mostly Black community surrounding it. This community has experienced a growing cancer risk linked to the facility’s emissions, prompting the closure of a nearby elementary school last year due to concerns about health risks from these emissions.
Denka has attributed its continued difficulties in emissions reduction to a significant shortage of qualified personnel needed to operate the pollution control infrastructure effectively. Despite having invested over $35 million since 2017 to enhance its equipment and reduce emissions by 85%, the plant’s emissions have consistently exceeded federal guidelines.
Denka acquired the facility from DuPont in 2015 and has been under increased scrutiny in light of new regulatory measures introduced by the Biden administration aimed at addressing issues of environmental justice. The plant is situated in an area commonly referred to as “Cancer Alley,” which has the highest cancer risk from industrial air pollution in the United States.
Environmental activists and local community members have expressed some relief over the suspension of operations but remain skeptical of Denka’s commitment to health and safety standards. Activists continue advocating for clean air and environmental justice, stressing that the plant’s shutdown should not be mistaken for resolving the long-standing concerns in the region.
Looking ahead, Denka is contemplating various options for the future, including a potential sale of the facility. However, no final decisions have been made regarding permanent closure or possible workforce reductions. The company has benefited from the support of Louisiana Governor Jeff Landry amid its regulatory challenges, but the path forward remains uncertain.
With rising costs for essential materials such as chlorine, required for production, being notably higher in the U.S. compared to other major production areas, the company’s financial viability continues to be precarious. Denka’s future operations will depend not only on the resolution of these economic challenges but also on addressing environmental compliance and community health concerns that have long plagued the facility.
Deeper Dive: News & Info About This Topic
- U.S. News: Louisiana Plant Halts Operations
- Google Search: Louisiana Plant Halting Operations
- Shreveport Times: Denka Plant Closing
- Google Scholar: Denka Plant Cancer Alley
- NOLA: Denka and EPA Issues
- Encyclopedia Britannica: Denka Plant
- AP News: Denka and Chloroprene Lawsuit
- Google News: Environmental Justice Louisiana
