Geismar, La. — BASF has confirmed it plans to move forward with the final phase of its MDI expansion project at Geismar. Capacity will be increased to 600,000 metric tons per year by the middle of the decade.
The expansion project started in 2018, and was planned in three phases. The company is investing $780 million in this third and final phase, which should be completed by the end of 2025.
The first phase, the construction of a new MDI synthesis unit, came on stream in October 2020. The second phase started operations in 2020, and expanded several existing upstream units. This third phase includes new upstream units and a splitter.
"BASF is committed to growing and partnering with our North American MDI customers, be it in the construction and appliance, transportation, automotive, footwear or furniture sectors," Ramkumar Dhruva, president of BASF’s monomers division, said in a news release. "With this integrated facility, we will continue to support our North American MDI customers by growing our capacity to meet their needs."
"This investment underlines our commitment to North America and strengthens BASF’s supply reliability and the competitiveness of our customers’ value chains in the region," BASF Corp. CEO Michael Heinz said in the news release. "As one of BASF’s Verbund sites, the Geismar location is ideally suited for the expansion of our MDI production thanks to its existing infrastructure, reliable raw material supply, skilled workforce and strong community support."