Denka Co. Ltd. will indefinitely suspend chloroprene rubber production at its U.S. subsidiary, Denka Performance Elastomer LLC (DPE), located in Louisiana, after safely ceasing operations for scheduled maintenance, according to a May 13 press statement. Denka owns a 70% stake in DPE.

The company will also record a loss of approximately ¥16.1 billion ($104 million) for the fiscal year ended March 31, 2025, due to an impairment of noncurrent assets at the site.

According to Tokyo-based Denka, the shutdown stems from a combination of factors, including rising costs to install and operate pollution control equipment to reduce chloroprene emissions, a shortage of qualified personnel, inflation-driven increases in energy and raw material prices and declining production volumes due to operational restrictions and supply chain disruptions.

The company noted that emission reduction requirements were more stringent than initially anticipated when it acquired the facility from DuPont in 2015. Unscheduled outages caused by severe weather events further reduced output.

Denka stated that it will evaluate options for the business, including a potential sale of assets, but no decision has been made on a permanent closure. Customers will continue to receive supply from existing inventory and the company’s Omi Plant in Itoigawa, Niigata.

Chloroprene rubber is used in adhesives, automotive components and cable jackets. The Louisiana plant employed 250 workers as of December 2024.