DuPont sells Neoprene polychloroprene to Denka Performance

DuPont Performance Polymers and Denki Kagaku Kogyo (Denka) signed a definitive agreement on December 10, 2014 to sell DuPont Neoprene polychloroprene to Denka Performance Elastomer LLC, a new joint venture company owned 70 percent by Denka and 30 percent by Mitsui. The sale is expected to close in the first half of 2015 pending receipt of customary regulatory approvals. Financial terms of the deal are not being disclosed.
 
Neoprene, invented by DuPont in 1931, is a synthetic rubber used for many chemical and weather-resistant products such as wet suits and orthopaedic braces. It also is used as a base resin in adhesives, electrical insulation and coatings. DuPont is a leading producer of Neoprene polychloroprene in North America through manufacturing operations at its Pontchartrain Works site in La Place, La. Approximately 235 employees in the US will be included in the transaction.
 
“Neoprene has been an important product line within DuPont Performance Polymers and we believe it will truly thrive as part of the Denka Performance Elastomer portfolio. This agreement further enables the DuPont Performance Polymers business to focus on innovative new offerings that drive profitable growth both today and over the long term,” said Patrick E Lindner, president of DuPont Performance Polymers.
 
Shinsuke Yoshitaka, president & CEO, Denka, added, “Chloroprene rubber is our core business and the acquisition from DuPont will largely contribute to our further sustainable growth. Also, Denka can establish a flexible supply structure with high-quality products. Furthermore, we expect to enjoy synergies with our Research & Development and technical services, which are our strengths. I believe that these positive effects will enable us to serve the market and the customers much better.”     
 
Tokyo-based Denka manufactures and distributes a wide range of chemical products, encompassing organic and inorganic materials, polymer processing, electronic materials and pharmaceuticals. Since 1962, Denka has been manufacturing polychloroprene in its plant in Omi, Japan, using the acetylene method of polychloroprene production.