BASF SE said it will start building a new 300,000 metric tons per year MDI plant in Geismar, La., in the spring of 2018. The new plant is scheduled to come on stream in 2020.
Planning and engineering for the new unit started in 2016 and were completed recently. The expansion work will begin early in the second quarter of this year, the Ludwigshafen, Germany-based chemical giant said.
The work will double BASF's annual MDI capacity in Geismar. The investment is to support the growth of its North American MDI customers.
According to the Louisiana Economic Development agency, BASF will invest $150 million in the multiphase project, "with further production units planned for later phases."
In the past decade, BASF has invested over $800 million in the site. Louisiana will provide BASF a $1.65 million modernization tax credit over the next five years.