Louisiana: controversial Denka plant suspends production after dire losses
A controversial chemical plant in the centre of Louisiana's 'Cancer Alley' region has indefinitely suspended all production following dire financial results, the facility's operators announced on Tuesday.
The Denka Performance Elastomer plant in St John Parish has long been associated with chronic air pollution issues and was the subject of a years-long Guardian reporting series examining the disproportionate cancer risk rates experienced by the majority-Black fence-line communities that surround the facility.
Denka, a Japanese chemicals firm, cited growing regulation during the Biden presidency and a 'sustained slowdown in the global market demand' for its product, a synthetic rubber called neoprene, which is manufactured at the site. The company had not decided on permanent closure, a statement said, adding the chemicals giant was 'exploring all available options for the future of the site, including sale of the facility'.
The fence-line community's fight for clean air has become a national and international environmental justice clarion call, prompting a number of interventions from the Biden administration. These included the introduction of a new rule governing emissions on the plant's primary pollutant, a likely human carcinogen named chloroprene, and a US justice department lawsuit seeking to compel Denka to lower its pollution.
The Trump administration sought to undo many of these initiatives. Trump's justice department dropped the litigation in March citing 'ideological overreach' and a new executive order targeting so-called 'DEI programs'.
Denka said the administration had also 'committed to rewrite' the Biden-era chloroprene rule.
Still, the company said in a statement that it had endured 'extraordinary loss in its financial results' for the last year amounting to a 16.1 billion yen (roughly $109m) in losses. Although citing a decline in global demand, the company also blamed the uncertainty caused by increased regulation under Joe Biden for its facility's financial collapse in America.
The Guardian has revealed how the plant's former owners, US chemicals giant DuPont, sought to sell the facility in 2015 in a secretive deal after citing concerns about potential environmental regulation and its impact on profit margins. DuPont allegedly withheld information about these concerns before selling to Denka.
DuPont did not immediately respond to a request for comment on Tuesday.
Denka made reference to the 2015 sale again on Tuesday, suggesting it had 'not anticipated' the need to install pollution control technology and equipment at the point of purchase. Since purchasing the facility, the Japanese firm has invested over $35m in emissions offset technology and has claimed to have reduced chloroprene emissions by more than 80%.
Notably, chloroprene readings recorded by the EPA have continued to show measurements well in excess of the federal government's lifetime exposure guidance.
Residents who have fought for years against the plant's pollution expressed some cautious optimism on Tuesday.
'It [the suspension of production] is not about us, the community. They don't care about us,' said Mary Hampton of Boundless Community Action. 'What I see now is that they never intended to get emissions down. But now they've been hit internationally they don't have a choice.'
Hampton, who has lived in the fence-line community of Reserve for her entire life and lost a number of family members to cancer, added that the community remained concerned about a potential sale to another manufacturer.
'I worry it's just a temporary thing,' Hampton said. 'I worry they're going to sell to somebody else, who will come in with the same regulations and keep doing exactly what they want.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
29 minutes ago
- Daily Mail
Clinton donor and lobbyist's chilling threats against Minnesota capitol days after Democrat lawmakers were shot
A Minnesota lobbyist is facing felony charges after he allegedly threatened to shoot people at the Minnesota State Capitol just days after a lawmaker in the state was assassinated and another critically injured. Jonathan Michael Bohn - who has made numerous donations to Democratic causes including Hillary Clinton 's presidential campaign - was arrested on Wednesday after making the threats via text message. The 41-year-old Bohn works as the public affairs director of the Inter Faculty Organization (IFO). He made his first appearance in Carver County District Court on Friday. In court, prosecutors said he had texted someone that he was 'excited to have his gun at the capitol and blow someone's effing face off'. The criminal complaint, seen by KARE11, prosecutors claim he also said that: 'After January 6, I bought a pistol. 'Today I bought 500 bullets. I can't wait to shoot one of you mother******* in the face,' he wrote. Officials said that a search of his home uncovered a firearm and he was placed under arrest. According to the Minnesota House GOP, the text was received by a constituent of Rep. Jim Nash who then reported it to the authorities. The outlet also reported that Bohn cried throughout his first appearance as Judge Eric Braaten set his bond at $1 million and ordered him to not contact the person he had text. Bohn was also ordered to stay at least a half a mile radius away from the Capitol complex. His attorney, John Lesch, said Bohn was engaged in a political argument when he made the comments. Lesch contended that the remarks were inappropriate but didn't mean to convey an actual intent to harm anyone. He told the court that Bohn had been angered by a post that had mocked two of his friends, Rep. Melissa Hortman and Sen. John Hoffman. Hortman was murdered last week alongside her husband Mark, while the same gunman also attempted to kill Hoffman and his wife. Authorities say Trump supporter Vance Boelter, 57, is responsible for the killings, he was arrested late on Sunday night following an extensive manhunt. Boelter was charged with a total of six federal counts - two for stalking, two for murder, and two for shooting and firearms offenses. He already faces state charges, including murder and attempted murder. In a statement, Bohn said: 'I condemn violence in all its forms, and I agree with the calls from public officials and community leaders to turn down the temperature of our political discourse. 'I failed to do that here. I am profoundly sorry that my words have created a distraction during this time of collective mourning. 'This moment demands unity, compassion, and reflection — and I am committed to being part of that healing.' In a bio on the IFO site, it says: 'In the halls of the Capitol, Jonathan is regarded as a well-connected advocate who has worked on a variety of issues leading to legislative victories.' State records say he has been registered as a lobbyist with the firm since 2015, and works in the area of higher education. The IFO is a union that represents thousands of faculty at the seven state universities in Minnesota. He has been placed on leave following the allegations. IFO President Jenna Chernega said in a statement: 'We are monitoring developments closely, cooperating as needed with law enforcement and will continue to keep our members informed. 'As an organization, we remain committed to respectful, values-driven engagement with lawmakers, community partners, and one another – even in difficult moments.' Federal Election Commission data also reveal he has donated Democrat PAC ActBlue numerous times, as well as the Hillary for America campaign.
Reuters
37 minutes ago
- Reuters
US judge blocks slashing of universities' federal funding from National Science Foundation
WASHINGTON, June 20 (Reuters) - A federal judge on Friday blocked the National Science Foundation from sharply cutting research funding provided to universities in the latest legal setback to efforts by U.S. President Donald Trump's administration to slash government support of research at major academic institutions.
Reuters
an hour ago
- Reuters
Billionaire Brad Jacobs' QXO offers $5 billion for GMS, threatens to go hostile
June 19 (Reuters) - Billionaire Brad Jacobs' new building-products distributor QXO (QXO.N), opens new tab made an offer on Wednesday to acquire GMS (GMS.N), opens new tab for about $5 billion in cash and said it will proceed with a hostile takeover if the company's management rejects the proposal. This is Jacobs's second hostile takeover threat in the building sector this year and part of his plan to turn QXO into a $50 billion revenue building-products distributor within a decade. The offer comes three months after QXO clinched an $11 billion deal to buy Beacon Roofing Supply, ending a prolonged takeover battle for the roofing company and significantly expanding its footprint in the U.S. and Canada. An acquisition of GMS would expand QXO's market from roofs into house interior materials, including drywall. QXO's proposal is still technically in the friendly phase, but Jacobs said that if GMS's board did not accept the offer by June 24, QXO was prepared to bypass management. 'If you choose not to engage ... we are prepared to take our offer directly to GMS's shareholders who we're confident will find the offer attractive,' Jacobs said in a letter sent to GMS Chief Executive Officer John Turner. In similar comments made during his takeover offer to Beacon, Jacobs said GMS was poorly managed and could be more profitable to shareholders under his command. Georgia-based GMS said in a statement on Thursday that it has received an unsolicited proposal from QXO that will be reviewed by its board. It did not immediately respond to a Reuters request for comment. GMS operates a network of more than 300 distribution centers and its product lineup includes wallboard, ceilings, steel framing and gypsum. Both Beacon and GMS operate primarily in the U.S., with additional presence in Canada. The U.S. building industry, mostly locally sourced and fairly protected from tariffs, is undergoing consolidation. QXO said it offered $95.20 per share for all outstanding shares of GMS, a premium of about 17% over the company's closing price on Wednesday. In the letter, Jacobs disclosed he first approached Turner in June last year, with conversations continuing until at least May 22, when the two CEOs met in New York. Jacobs added his decision to take the offer public came after GMS's shares rose following market speculation over a potential QXO acquisition. The offer represents a 29% premium over GMS's value on May 22, he said. On Wednesday, before the offer was made public, shares of GMS hit their highest level in almost five months after the company reported upbeat quarterly results and announced an additional $25 million in annualized cost reductions. Jacobs said following the private talks with Turner, he heard from industry participants that J.P. Morgan and Jefferies bankers had been aggressively trying to find other suitors to buy GMS. Home improvement chain Home Depot (HD.N), opens new tab has also made an offer for GMS, the Wall Street Journal reported on Thursday, citing people familiar with the matter. Spokespersons for Home Depot and GMS declined to comment on the report. Goldman Sachs and Morgan Stanley are acting as financial advisers to QXO. And Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel. Jacobs has built an empire of multibillion-dollar companies spanning industries from logistics to waste management and equipment rentals by acquiring companies in industries undergoing consolidation, and spinning some of them off at a higher value. QXO was a relatively small software company until 2023, when Jacobs invested about $1 billion and renamed and repurposed it.
