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Denka’s Louisiana chloroprene rubber plant to remain open as EPA rules go into effect

Tokyo, Japan – Denka Performance Elastomer LLC (DPE), a U.S. subsidiary of Denka Company Limited, applied for a two-year extension of the grace period from the Louisiana Department of Environmental Quality (LDEQ). This extension was approved on June 27, 2024. Subsequently, DPE sought legal confirmation of this extension from the U.S. 5th Circuit Court of Appeals and filed an emergency motion to prevent the EPA from enforcing the new regulations during the review process.

On April 9, 2024, the U.S. Environmental Protection Agency (EPA) introduced new regulations aimed at reducing chemical air emissions from chloroprene rubber manufacturing facilities. These regulations, which include significant measures to cut emissions of chloroprene monomer, were published in the Federal Register on May 16, 2024, and took effect on July 15, 2024. A 90-day grace period was provided, ending on October 15, 2024, for facilities to comply with these new standards.

On July 31, 2024, the 5th Circuit Court granted DPE’s motion, effectively extending the grace period until the court rules on the validity of LDEQ’s approval. As the EPA did not request a rehearing, the extension remains in place.

DPE has also filed a petition with the U.S. Court of Appeals for the District of Columbia Circuit to review the content of the new regulations. The outcomes of these legal proceedings are still pending, and their impact on DPE’s operations and financial results is being closely monitored. Any significant developments will be promptly communicated.