Denka suspends chloroprene production at LaPlace

Louisiana production suspended indefinitely

Denka has suspended chloroprene rubber production at its Denka Performance Elastomer facilities in LaPlace, Louisiana, for an indefinite period. The facilities had already stopped operating for regular maintenance when the company elected not to restart them. Denka announced the decision on 13 May 2025.

Customers will receive supplies from existing inventories and production at Denka's Omi Plant in Itoigawa, Japan. The company is considering options for the U.S. business, including a potential sale of the business or its assets. It has made no decision to close the facility permanently.

Denka logo.

Impairment and operating challenges

Denka will record an impairment loss of approximately ¥16.1 billion on related noncurrent assets for the financial year ended 31 March 2025. The company identified several pressures on the subsidiary's operations:

pollution-control equipment and emission-reduction costs;
higher energy, raw-material and repair costs;
difficulties recruiting and retaining qualified staff;
lower production volumes and interruptions linked to supply chains and severe weather.

Operational restrictions associated with pollution-reduction measures also affected production. Denka said these challenges, together with changes in the global chloroprene rubber market, made an improvement in near-term profitability difficult.

Synthetic rubber stock — Synthetic rubber; thematic warehouse scene.

The subsidiary and its manufacturing history

Denka USA LLC holds 70% of Denka Performance Elastomer, while Mitsui & Co.'s wholly owned Diana Elastomers holds 30%. The subsidiary had 250 employees and capital of US$121 million as of 31 December 2024. It manufactures and sells synthetic rubber.

Denka Performance Elastomer was established as a U.S. joint venture with Mitsui. The partners agreed to acquire DuPont's chloroprene rubber business in December 2014. Transfer procedures were completed on 31 October 2015, and the venture took over the relevant operations at DuPont's Pontchartrain Works in LaPlace effective 1 November 2015.

The Louisiana operation complemented Denka's established Omi Plant in Itoigawa, Niigata Prefecture. At the acquisition, Denka intended to strengthen supply and operate closer to North American customers. Denka Company Limited is headquartered in Tokyo.

Chloroprene rubber is also known as neoprene or polychloroprene. Its applications include automotive parts, personal protective equipment, medical devices and aquatic fabrics such as wetsuits.