BASF's MDI expansion hits third, final phase

GEISMAR, La.—BASF Corp. has taken another big step forward in its effort to increase methylene diphenyl diisocyanate production, breaking ground on the third and final phase of its expansion project in Geismar.

It marks the company's largest wholly owned investment in North America.

The final phase of MDI expansion, estimated to cost around $780 million, will add new upstream units and a splitter. BASF said the facility upgrades will embrace state-of-the-art technology and advanced digitalization, while employing the highest safety standards.

The final phase of the of the project is expected to be completed by 2025.

"BASF already ranks among the largest and most forward-looking chemical companies in the United States," said Michael Heinz, Chairman and Chief Executive Officer, BASF Corporation. "Through this investment, we demonstrate our commitment to meeting the needs of our customers while strengthening our foundation for continued growth in the important U.S. market."

The three-phase project launched in 2018 and has a total cost of around $1 billion. The first phase, brought online in 2020, involved the addition of a new MDI synthesis unit. The second phase, which started operations a year later, expanded several existing upstream units.

As a whole, the three-phase expansion project is intended to support North American MDI customers. Upon completion by the middle of the decade, it is expected to increase BASF's production capacity by about 600,000 metric tons annually.

"We are committed to continuing the success story together with our North American MDI customers," Stefan Doerr, senior vice president of monomers for North America, said in a statement. "BASF is investing to support our customers in various industries with significant growth potential in MDI applications, including transportation, automotive, footwear and furniture."

Florham Park, N.J.-based BASF Corp. is the North American affiliate of BASF S.E. in Ludwigshafen, Germany. The company employs around 16,700 across North America and recorded sales of about $25.9 billion in 2021.