TOKYO—Denka Corp. has played down the effects of a fatal accident at its chloroprene rubber production factory in Omi, Japan, which has led to the partial shutdown of the manufacturing site.
According to the Japanese group, the overall volume of production at the Omi plant stands at 70 percent, following the accident at the site in June.
"However, as CR demand has been more stagnant than expected, there has been no impact on shipments to date," Denka reported in an earnings Q&A Aug. 29.
The group said it had been able to meet "what demand there is" by releasing inventories.
Denka said that once safety is confirmed by the accident investigation committee, the facilities currently in suspension will resume operations.
"Taking these factors into account, we believe that, going forward, CR production and shipment will remain unaffected by this accident," the group added.
In addition to CR, the Omi plant produces poval, carbide, calcium cyanamide (lime nitrogen), alumina fiber and cement, and employs approximately 1,000 people.