BASF Invests $87M to Expand MDI Plant in Louisiana

German chemicals firm BASF plans to invest $87 million in the second phase of a capacity expansion project at its chemical production complex in Geismar, LA, Louisiana Gov. Bel Edwards announced in a press release late last week. 

First announced in early 2018, the multiphase expansion effort will boost production of methylene diphenyl diisocyanate (MDI), a material used in the manufacturing of polyurethanes, from 300,000 mt to 600,000 mt. BASF invested $150 million to complete the first phase of the project.

“With the development of the American market, BASF needs this investment to support the growth of our existing customers,” BASF Senior Vice President Stefan Doerr, head of the firm’s Monomers regional business unit in North America, said in a statement. “The Geismar site is ideally suited for this investment thanks to the existing infrastructure, competitive raw materials, and favorable business support from state and local governments.”

Construction on the second phase of the expansion is slated to commence by the end of this year and reach completion by 2021. 1,238 existing positions will be retained at the complex as a result of the firm’s investment, according to the company. The first phase of the expansion project is expected to wrap up in the first half of 2019. 

BASF currently operates MDI production facilities in China, South Korea, Belgium, and the U.S. 

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