AgroPages-DuPont will not reopen US insecticide plant-Agricultural news

DuPont will shutter the LaPorte Texas insecticide plant, the site of an industrial accident that claimed four lives.

The plant manufactures Lannate and Vydate insecticides and has been shut down since the accident in November 2014.

DuPont spokesman Greg Schmidt issued the following statement:

“DuPont has made the difficult decision not to restart the manufacturing units at the La Porte site. We believe significant changes in market conditions during the period of the shutdown will persist over the long term and do not support restarting the facility. DuPont will provide resources and assistance to employees in their job searches, both internal and external to DuPont,”

Schmidt concluded: “DuPont is committed to continuing to honor the memory of the employees we lost on November 15, 2014. Safety continues to be the top priority for DuPont and at the facility as we work to ensure safe decommissioning of equipment.”

“Since the shutdown of the facility, there have been a number of changes in the global crop protection chemicals market including low crop prices which have impacted demand for crop protection chemicals and declines in the Brazilian market due to lower insect pressure, insect resistant crops and currency and economic conditions,” the company stated in a filing with the Securities and Exchange Commission.

The filing came in relation to a disclosure of a $70 million one-time charge for closing the plant in the first quarter of this year.

“Due to the changes in the market, uncertainty regarding when the facility could be restarted and further capital expenditures required for the restart, the company has decided that restart of the facility is not a long-term viable and cost efficient option for the DuPont Crop Protection business,” the statement continued.

The accident led to harsh criticism of the company from a U.S. government agency that investigates accidents at chemical plants. It also damaged the reputation of the company, which has long touted its safety-first culture and operates a sizable business in that area.

The leaking chemical that caused the fatalities is used to provide an odor to natural gas. Some criticism from DuPont workers was directed at cost-cutting efforts by former CEO Ellen Kullman. Kullman retired from the post last year, with current CEO Edward Breen accelerating the process.

Breen went on to engineer the merger of DuPont with Dow. The combined companies will be spun off into three separate companies that will include an agriculture business that includes insecticides. The business will be based in Delaware.

The state offered an incentive package for the small headquarters operation.