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Denka Performance Elastomer Plant Suspends Operations Due to Financial Losses

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Denka Performance Elastomer Plant with visible pollution control equipment

News Summary

The Denka Performance Elastomer plant in St. John the Baptist Parish has suspended operations indefinitely amid significant financial losses exceeding $109 million. The facility has faced scrutiny for its toxic emissions and their impact on the local community, raising health concerns in an area known as ‘Cancer Alley.’ With challenges like staffing shortages and stringent pollution regulations, the future of the plant remains uncertain as stakeholders consider its fate.

St. John the Baptist Parish, Louisiana — The Denka Performance Elastomer plant has indefinitely suspended operations amid significant financial losses and escalating costs associated with reducing toxic pollution. This decision comes as the plant has reported a loss exceeding $109 million over the past fiscal year, attributed to weakening global demand for neoprene, staffing shortages, and rising operational costs.

Located about 30 miles northwest of New Orleans in a predominately Black community with a notably high cancer risk, the Denka facility has been a focal point for environmental concerns, particularly regarding its emissions of chloroprene, categorized as a likely carcinogen. The company has faced criticism for its environmental impact and was subject to pollution control measures imposed by the Environmental Protection Agency (EPA), which Denka described as “unfair and targeted.”

The plant’s suspension of operations follows the recent shutdown of a nearby elementary school due to concerns over emissions exposure, underlining the serious health risks faced by the local community. Environmental activists have responded with cautious optimism regarding the suspension but remain skeptical of Denka’s intentions and the potential for future operations.

Financial and Operational Challenges

Denka’s recent operational pause is largely driven by profound financial challenges the company is encountering. In addition to a significant loss last fiscal year, Denka has voiced difficulties related to the high costs of complying with federal pollution standards and the operational labor shortages that have complicated the management of pollution control equipment.

Despite investing over $35 million in pollution control technology since 2017, which has reportedly reduced emissions by approximately 85%, the plant consistently fails to meet federal pollution guidelines. The company has mentioned the possibility of selling the facility as it evaluates its future directions; however, no definitive actions concerning permanent closure or workforce reductions have yet been taken.

Environmental and Community Impact

The Denka plant is situated in an area infamously known as “Cancer Alley,” which refers to regions along the Mississippi River characterized by increased incidences of health issues related to industrial pollution. The Biden administration has emphasized environmental justice and has placed scrutiny on the emissions from facilities like Denka. Under the prior Trump administration, a federal lawsuit regarding Denka’s emissions was withdrawn, allowing the company to avoid facing immediate legal consequences regarding its pollution levels.

As denizens of the local community grapple with the reality of living near industrial facilities with troubled histories, local activists have stressed the ongoing necessity for advocacy for clean air and improved public health standards. They have called for more stringent regulations and maintained a critical eye on Denka’s actions moving forward.

Future Prospects

The future of the Denka Performance Elastomer plant remains uncertain. With the temporary suspension of its operations, stakeholders are left to speculate whether the company will permanently close the facility, engage in a sale, or resume operations under stricter compliance with environmental guidelines. Community members and environmental groups continue to monitor the situation closely, demanding transparency and accountability from the company in light of the suspensions and the health risks posed by its previous operations.

As the State and federal authorities continue to address issues of environmental impact and community health, the closure of the Denka plant marks a critical moment for ongoing discussions regarding industrial pollution and its long-term consequences for vulnerable communities.

Deeper Dive: News & Info About This Topic

Denka Performance Elastomer Plant Suspends Operations Due to Financial Losses

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