Bayer AG said on Tuesday it will scrap a nearly $1 billion project to produce the chemical dicamba, but also mentioned the move is unrelated to a federal court decision that blocked sales of weed killers based on the product.
The company is moving to save cash as it is in an expensive legal battle to fight allegations that another product, Roundup, causes cancer. Bayer denies the claims.
The company says it is halting the Louisiana plant because global overcapacity for producing the chemical made the investment less attractive.
Bayer will continue to buy dicamba and produce its XtendiMax herbicide at another plant in Iowa, according to a statement.