Denka shuts down Louisiana plant amid mounting environmental and economic pressures

LaPlace, Louisiana — Japanese chemical manufacturer Denka Co., Ltd. has announced the indefinite suspension of operations at its Denka Performance Elastomer LLC (DPE) facility in LaPlace, Louisiana, marking a significant retreat from U.S. chloroprene rubber (CR) production. The decision follows a series of escalating challenges, including stringent environmental regulations, rising operational costs, and labor shortages.

The plant, acquired from DuPont in 2015, has been a focal point of Denka’s North American operations. However, the company reported an extraordinary loss of ¥16.1 billion (approximately €97 million) for the fiscal year ending March 2025, largely attributed to an impairment on the facility’s assets.

Denka cited unexpected pollution control mandates as a key factor in the decision. The U.S. Environmental Protection Agency (EPA) required the installation of advanced emissions-reduction systems, which Denka claims were not anticipated at the time of acquisition. The company also faced difficulties hiring skilled personnel to operate the new systems, further complicating compliance efforts.

In addition to regulatory hurdles, the plant has struggled with soaring energy and raw material costs, inflationary pressures, and frequent production disruptions due to weather events and supply chain instability. These factors have significantly reduced the plant’s output and profitability, prompting Denka to halt production following routine maintenance earlier this year.

While Denka has not officially declared a permanent closure, the company is exploring all options, including a potential sale of the facility or its assets. In the interim, Denka will continue to supply customers using existing inventory and production from its Omi Plant in Japan.

The closure marks a pivotal moment for the chloroprene rubber industry in the U.S., raising questions about the future of domestic CR production and the viability of legacy chemical plants under tightening environmental standards.