GEISMAR, La.—BASF Corp. plans to spend about $42 million to construct a polyurethane systems house in Geismar to expand its applications portfolio and improve the company's customer service.
The self-contained operation will make raw materials that will be blended to create customized products for customers in the transportation, furniture and construction industries, the firm said.
Each systems house contains sales, customer care, technical service, technical development, production, quality control/assurance and shipping, a company spokeswoman said. The Geismar System Hub will contain production, quality control/assurance and shipping.
Construction on the new site will be launched in the second quarter of 2014 and completed in mid-2015, she said. Ultimately about 22 jobs should be added.
"The new facility will serve a wide range of applications and solutions for our customers, and aims to improve reaction and service to the growing North American market," the spokeswoman said.
BASF's latest project demonstrates its commitment to the future growth in the region and the market, according to Tom Yura, senior vice president and general manager of the Geismar operation.
He said "the project further strengthens our position as a leading supplier of chemistry for sustainable solutions by creating efficiency and shortening the supply chain to our customers."
The company's manufacturing presence in Geismar consists of two separate sites. Its main facility features 22 production units and is the Florham Park, N.J.-based firm's largest manufacturing site, the spokeswoman said.
Products made at the main facility include a wide range of chemicals used in the automotive, carpeting and furniture, printing, pharmaceuticals, personal care, batteries, adhesives, detergents, construction packaging, agrochemicals, spandex/elastic fibers and numerous other end markets, she said.
The second Geismar facility, called Geismar Dinitrotoluene, is located about a half mile from the main plant and makes raw materials for urethane foams used in furniture, bedding, carpet and automotive packaging. The new polyurethane systems house will be built at the second site, the spokeswoman said.
BASF has 40 system houses in its global network. The North American affiliate of Ludwigshafen, Germany-headquartered BASF S.E., the company's manufacturing presence in Louisiana also includes operations in Zachary and Vidalia. It employs about 2,000 in the state.