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Denka Suspends Operations at Louisiana Facility Amid Health Concerns

Residents discussing the impact of industrial pollution at a community meeting in Louisiana.

News Summary

Denka, a Japanese petrochemical company, has indefinitely suspended operations at its synthetic rubber facility in St. John the Baptist Parish, Louisiana, due to high operational costs and financial losses exceeding $109 million. The facility’s emissions of chloroprene, a known carcinogen, have raised health concerns in the largely Black surrounding community. Despite previous investments in emissions reduction, Denka continues to exceed federal pollution guidelines. Environmental advocates see this suspension as a win for community health while expressing concerns about the future of the facility.

St. John the Baptist Parish, Louisiana – Denka, a Japanese petrochemical firm, has announced the indefinite suspension of operations at its synthetic rubber facility located in St. John the Baptist Parish, approximately 30 miles northwest of New Orleans. The decision is primarily driven by concerns over the high costs associated with reducing toxic pollution emissions and ongoing financial losses exceeding $109 million in the past year.

The company cited several factors contributing to its challenging financial situation, including weakening demand for its products, difficulties in staffing, and increased operational costs. These challenges have made it difficult for Denka to improve its profitability and sustainability.

Denka’s facility has faced scrutiny due to its emissions of chloroprene, a likely carcinogen linked to higher cancer risks in surrounding communities, which are predominantly Black. The Environmental Protection Agency (EPA) has imposed stringent pollution control measures that Denka has described as “unfair and targeted.” The Biden administration’s environmental justice initiative has intensified focus on Denka’s practices in light of these health concerns.

This is a significant shift from previous policies under the Trump administration, during which a lawsuit against Denka alleging unacceptable cancer risks was dropped. Local community health concerns were further highlighted when a nearby elementary school was closed due to fears about emissions exposure among students.

Environmental activists have expressed cautious optimism regarding the suspension, viewing it as a potential victory for community health. However, many remain skeptical of Denka’s commitment to genuinely address the health and environmental issues at hand.

Operational Challenges and Costs

Denka produces Neoprene, a synthetic rubber commonly found in a variety of consumer products. The company has claimed to have invested over $35 million in emissions reduction technologies since 2017. Nonetheless, it continues to exceed federal pollution guidelines, indicating that more stringent measures are necessary.

The costs associated with implementing new pollution controls have been described as significant, and Denka has also flagged a shortage of qualified personnel to operate such technologies. In addition to these challenges, the company has been affected by broader market conditions, including a slowdown in demand, rising energy prices, and disrupted supply chains that have impacted overall operations.

Future Considerations

Denka has engaged in discussions with Louisiana’s Republican Governor Jeff Landry regarding possible options for the facility, including a potential sale of the business. As of now, no permanent closure decision has been finalized.

The facility is situated in the Mississippi River Chemical Corridor, a region notorious for high cancer rates due to various industrial emissions. Local community advocates continue to raise concerns about the long-term implications of the facility’s suspension, expressing the need for ongoing advocacy for better environmental health standards.

The current suspension of operations aligns with broader regulatory shifts in the U.S. regarding environmental enforcement practices, marking a contrast from previous federal initiatives and highlighting the ongoing complexities surrounding industrial pollution control in vulnerable communities.

In conclusion, while Denka’s suspension marks an important moment for environmental health advocates, the long-term fate of the facility and the community remains uncertain. Activists worry that the current halt may not yield a permanent resolution, fearing the possibility of Denka resuming operations or transitioning to another producer.

Deeper Dive: News & Info About This Topic

Denka Suspends Operations at Louisiana Facility Amid Health Concerns

STAFF HERE NEWORLEANS WRITER
Author: STAFF HERE NEWORLEANS WRITER

NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.

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