BASF Inaugurates $1 Billion MDI Production Facility in Geismar, Louisiana

BASF has confirmed the on-time, safe and successful start-up of the third and final phase of its methylene diphenyl diisocyanate (MDI) plant at the Verbund site in Geismar, Louisiana, and is inaugurating the new production facility. The roughly $1 billion project is BASF’s largest wholly owned investment to date in North America and raises the site’s annual MDI production capacity to approximately 600,000 metric tons, doubling output through the three-phase expansion.

Dr. Markus Kamieth, chairman of the Board of Executive Directors of BASF SE said:

“The United States has long been a key market for BASF, and this $1 billion investment is a strong commitment to our customers and to our future here. With our new world-scale MDI facility in Geismar, we are strengthening our core businesses, driving innovation and bringing more production closer to our customers. I am particularly proud that our team has delivered this complex project on time and want to thank everyone who made it possible.”

Polyurethane feedstock for North American customers

MDI is a key raw material used to make polyurethanes, which are used in construction, appliances, transportation, automotive, footwear, furniture and other industries. BASF said the additional Geismar capacity is intended to provide a reliable, competitive and locally integrated supply of MDI in North America. The company also said the new plant uses advanced digitalization and is designed for production flexibility.

Ramkumar Dhruva, president of the Monomers Division at BASF said:

“This significant investment reflects our confidence in the continued growth of the polyurethane market and ensures that our customers benefit from a highly reliable, competitive and locally integrated supply source for years to come. With this expansion BASF is taking the lead in MDI production in North America.”

Aniline expansion at the same site

As part of the project, BASF also increased aniline production capacity in Geismar, strengthening the site’s integrated value chain and creating additional supply for North American customers in the rubber, agricultural chemicals and dyes and pigments industries. The company said expanded production capabilities now enable direct aniline sales from Geismar.

Heather Remley, president and CEO of BASF Corporation said:

“This new MDI plant is a strong sign of BASF’s commitment to manufacturing in the United States, where we have had a presence for more than 150 years. It took an incredible team to bring this plant to life, and to build it safely.”