News Summary
The Denka Performance Elastomer plant in LaPlace, Louisiana, has announced a suspension of neoprene production due to significant financial losses, reporting a $109 million loss for the fiscal year ending March 31. As the sole U.S. producer of neoprene, Denka faces ongoing regulatory challenges related to chloroprene emissions, further complicating its operational viability. Although no permanent closure has been decided, the company is considering selling the facility, which holds economic importance for the local community and employs approximately 250 workers.
LaPlace, Louisiana – The Denka Performance Elastomer plant, the sole producer of neoprene in the United States, has announced a suspension of production due to substantial financial losses and ongoing regulatory challenges. The decision, made public on May 13, 2025, follows a reported loss of $109 million for the fiscal year ending March 31.
The suspension comes as Denka Co. Ltd., the Japanese chemical company that acquired the plant from DuPont in November 2015, faces a confluence of increasing operational costs, declining production volumes, staffing difficulties, and a sluggish global market for chloroprene, which is the key component in neoprene production. Prior to this announcement, the facility had already been closed for regular maintenance.
While Denka indicated no permanent closure decision has been made, the company is actively considering the sale of the facility, which employs approximately 250 workers. The LaPlace plant generates around $2 million annually in sales tax revenue for St. John the Baptist Parish, underscoring its economic significance to the local community.
Regulatory and Emission Challenges
The Denka plant has faced extensive legal and regulatory scrutiny regarding its emissions of chloroprene, a chemical that the Environmental Protection Agency (EPA) classifies as likely carcinogenic. The facility is responsible for 95% of the chloroprene emissions in the United States, raising considerable concerns among residents of nearby communities, particularly due to the area’s notoriety as “Cancer Alley.”
The Biden administration implemented stricter regulations on chloroprene emissions, contrasting sharply with the previous administration’s more lenient stance. There have been ongoing concerns voiced by community advocates about the health impacts of chloroprene emissions, especially those living in the five census tracts that the EPA identified as having elevated cancer risks in a 2014 report.
Community Response and Economic Context
The potential shutdown of the Denka plant has elicited mixed reactions from the community. Although local advocates expressed relief at the possibility of reduced emissions, they criticized Denka for linking this decision more to regulatory pressures than to its economic viability. Environmental groups have expressed frustration towards both state and federal officials for what they perceive as a prioritization of the plant’s economic contributions over the health and safety of local residents.
Despite these challenges, Louisiana Governor Jeff Landry and St. John Parish President Jaclyn Hotard have publicly supported Denka’s operations, emphasizing the economic benefits and job creation associated with the plant. The facility’s ongoing issues, such as unexpected costs linked to pollution control measures, contribute to its operational uncertainties and reflect the complex balancing act between environmental regulations and economic stability in the region.
Future Outlook
As the Denka Performance Elastomer plant considers its future, stakeholders remain concerned about the broader implications of its operating challenges. The potential for job transitions into environmentally friendly industries is being discussed as a necessary long-term solution, particularly if the plant ultimately ceases operations.
With the plant’s suspension of production, the community and state officials are left to navigate the potential changes in local employment and health outcomes, all while balancing environmental responsibilities and economic necessities. The Denka facility’s operational status remains uncertain, but its future will significantly impact both the local economy and the health of the residents in LaPlace and surrounding areas.
Deeper Dive: News & Info About This Topic
- Fox8 Live
- Wikipedia: Neoprene
- NOLA
- Google Search: Denka Performance Elastomer
- L’Observateur
- Google Scholar: Denka chloroprene
- Chemistry World
- Encyclopedia Britannica: Chloroprene
- New York Times
- Google News: Denka emissions
