Dec 15 2005
DuPont Performance Elastomers, recently reaffirmed to the United Steelworkers International Union (USW) its decision to close its Louisville, Kentucky neoprene manufacturing plant in December 2006. DPE is the result of a dissolved joint venture between DuPont and Dow known as DuPont Dow Elastomers (DDE). At this location, DPE produces neoprene, a particular kind of synthetic rubber which has application in the automotive and construction industries.
USW officials had hoped that DPE would recognize the business imperative of continuing the already profitable endeavor of supplying neoprene to existing and potential customers at a time when rubber manufacturers and custom mixers throughout New England were pleading with companies such as DPE to increase production so that they could stay in business.
Local 5-2002 President Carl Goodman said, "Especially considering DPE's focus on the bottom line, we thought that the severe shortage of neoprene, exacerbated by Hurricanes Katrina and Rita's adverse effect on the company's expansion plans at its Pontchartrain, Louisiana facility would convince the company that they need to keep our plant open in order to be the 'long term sustainable supplier' that they have publicly stated that they intend to be."
The severe shortage of neoprene has caused representatives of New England's rubber manufacturers to lament that plants throughout that region may be forced to close with the resulting loss of thousands of jobs. The current shortage grew worse by Italy's Polimeri Europa's decision to close its plant in Champagnier, France effective September 30th. In addition, the International Trade Commission's 2006 decision to reaffirm a 55% tariff on Japanese manufacturers who ship neoprene to the U.S. further suppresses the amount of product available to rubber manufacturers and mixers.
The USW recently declined an invitation to appear before the Trade Commission in order to criticize the tariff. USW International Representative James Briggs noted "Considering the effect that reducing or eliminating the tariff would have had on remaining jobs in the U.S., we could not take part in that discussion despite our ongoing problems with DuPont and with DPE."
Even DPE has acknowledged that demand for neoprene is high globally, and that the lingering effects of Hurricanes Rita and Katrina have affected plans to expand production in its Pontchartrain, Louisiana plant that was purportedly designed to offset the closure of the efficient and viable Louisville, Kentucky facility. With construction outfits throughout the South understandably occupied with rebuilding homes, schools and churches on the Gulf Coast, further delays in expanding production facilities in DPE's Pontchartrain site appear inevitable.
And the consequences are all too real and immediate in Louisville. Local 5-2002 President Goodman emphasized, "The Louisville plant is the most versatile neoprene manufacturing site in the world. The work force is senior and skilled, and we have the manpower, facilities and capabilities to ramp up production for years to come thereby saving jobs here and potentially throughout New England. Now we are faced with over 200 skilled workers being tossed into the street in about one year's time. Instead we could keep these members gainfully employed here for years while adding to DPE's profits and helping maintain this critical industry in New England and elsewhere."
http://www.steelworkers-usw.org/
15th December 2005