Impact of New EPA Regulations on the DPE Chloroprene Rubber Business
First written in FY2024. 3 of 7 entries say "Worsened", first in FY2026-H1. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026RestatedAnnual report
「In response to the regulations, DPE filed a petition with the US Court of Appeals for the District of Columbia Circuit on 16 May 2024 seeking a review of the regulatory requirements. On 10 July 2024, DPE also filed a petition with the US Court of Appeals for the Fifth Circuit seeking confirmation of the legal validity of the Louisiana Department of Environmental Quality’s (LDEQ) approval of a two-year extension to the grace period for applying the regulations. Both petitions remain pending before the respective courts, but as of the filing date, the court proceedings have been stayed pursuant to decisions by both courts.」
The 2 petitions concerning the EPA regulations applicable to DPE remain pending, but as of the filing date, the court proceedings have been stayed pursuant to decisions by both courts. - FY2026-H1WorsenedAnnual report
「Profit attributable to owners of the parent amounted to ¥3.902 billion, up ¥530 million year on year, or 15.7%, as the company recorded an extraordinary loss related to its US subsidiary Denka Performance Elastomer, Inc., where operations had been temporarily suspended without a specified end date, while also recording a gain on the transfer of the Ofuna Plant site as an extraordinary gain.」
Special losses related to the indefinite temporary suspension of DPE’s operations continued to be recorded, and the burden associated with regulatory compliance and continued operations has been reflected in results. - FY2025MaterialisedAnnual report
「In addition to the substantial costs incurred for the installation and operation of equipment to reduce chloroprene monomer emissions, inflation in the United States in recent years has accelerated increases in the costs of key raw materials and repairs, resulting in higher costs.」
The costs of installing and operating emissions-reduction equipment and operational restrictions arising from compliance with EPA regulations placed an actual burden on costs and production, and DPE’s manufacturing facilities were temporarily suspended. - FY2024First statedAnnual report
「On 9 April 2024 (local time), the US Environmental Protection Agency (the “EPA”) announced new air emissions regulations for chemical substances applicable to chloroprene rubber manufacturing facilities, including those operated by our US subsidiary Denka Performance Elastomer LLC (the “DPE”).」
The EPA announced new air emissions regulations for chloroprene rubber manufacturing facilities, including DPE. The regulations require substantial reductions in emissions, and DPE has filed a lawsuit with the US Court of Appeals seeking relief on the grounds that they may have a serious impact on the continuation of its operations.