BASF Expanding Production Capacity at AL and LA Plants

November 16, 2016

2 Min Read
BASF Expanding Production Capacity at AL and LA Plants
The BASF Geismar, LA manufacturing site. Image courtesy of BASF

German chemical company BASF is investing more than $200 million to expand its plastics additives business around the world, including an capacity upgrade of its plastics additives manufacturing plant in McIntosh, AL, a company press release said Monday. In a separate announcement Wednesday, BASF said it was also investing in the expansion of production capacity of methylene diphenyl diisocyanate (MDI) at its Verbund manufacturing site in Geismar, LA  plant from 300,000 mt per year to 600,000 mt annually.

“The engineering for the capacity of the MDI synthesis has already started. In subsequent steps, which will be implemented in alignment with business development, the MDI precursor units in Geismar will be expanded accordingly,” said a statement by Stefano Pigozzi, president of BASF’s monomers division, on the Geismar plant expansion. “The usage of latest proprietary technologies will ensure the best-in-class productivity and energy efficiency.”

MDI is used as a component of polyurethanes, a material used in many applications from adhesives to paints. The Giesmar plant currently occupies 2500 acres and includes 22 production units.

“With this investment, BASF will support the growth of its North American customers. Our existing infrastructure at the Geismar site combined with the competitive raw materials based on shale gas make the Geismar site ideally suited for this investment. The experienced BASF team at the site will ensure smooth implementation of the project” said Stefan Doerr, head of the regional business unit Monomers in North America, in the press release.

BASF did not specify when the Geismar expansion project would be completed.

The German chemical company is expanding production capacity of light stabilizers from its Tinuvin line at the Alabama plant, as well as production of Benzotriazoles (BZTs). 

"Low-priced natural gas feedstock enticed many large petrochemical companies to construct new plants and expand operations in North America," the company's press release on the McIntosh plant expansion said, "BASF's investment aligns with announced expansions by existing and new polyolefin producers in North America, which singificantly increases production capacity in the market."

Other BASF Plastics Additives business manufacturing sites are located in Mexico, Germany, Italy, Switzerland, Bahrain, China, and Singapore.

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