BASF completes $1 billion Louisiana MDI capacity expansion
BASF has inaugurated a $1 billion MDI production facility at its Geismar, Louisiana Verbund site, nearly doubling its annual capacity to 600,000 metric tons and solidifying its position as North America's largest MDI producer.
BASF opened its $1 billion methylene diphenyl diisocyanate (MDI) production facility at its Geismar Verbund site in Louisiana on Wednesday. The investment, the company's largest wholly owned project in the United States to date, completes a multi-phase expansion that nearly doubles the site's annual MDI production capacity to approximately 600,000 metric tons.
The Geismar expansion began in 2018 and was executed in three phases. The first phase finished in 2020, adding a new MDI synthesis unit while decommissioning an older one. A second phase expanded several upstream production units in 2021. This final phase involved constructing additional upstream facilities and a splitter featuring advanced technology, digitalization capabilities, and enhanced safety systems. The project was completed on schedule.
Expansion strengthens BASF's North American market position
The capacity increase positions BASF as the largest MDI producer in North America. The Geismar site is the largest in North America under BASF's Verbund strategy, an integrated manufacturing system where by-products from one plant serve as starting materials for another. This expansion improves supply reliability across the region for polyurethane manufacturers and reduces dependence on imports. The project also increased BASF's aniline production capacity at Geismar, strengthening the site's integrated value chain.
Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, stated that the investment reflects a strong commitment to the company's customers and future in the United States, which is one of its most important markets. Ramkumar Dhruva, President of BASF's Monomer Division, said BASF is taking the lead in MDI production in North America.
Supply chain integration supports downstream industries
The expansion supports growing demand from a wide range of downstream industries that rely on polyurethanes. The increased MDI production will provide a more reliable, competitive, and locally integrated supply to customers in key sectors.
Increased aniline capacity may also improve regional availability for customers in agricultural chemicals, rubber, dyes, and pigments. The expanded operations could moderate MDI prices and limit upward pressure during periods of tight supply, offering downstream producers improved procurement flexibility. Market impact, however, depends on operating rates, customer demand, and broader supply-and-demand conditions.
The facility's completion on schedule enables BASF to meet growing regional demand for MDI while strengthening its integrated manufacturing chain at the Geismar Verbund site. BASF operates more than 150 locations across 40 states in the U.S., and in 2025 approximately 90 percent of its €13.1 billion in U.S. sales came from products manufactured domestically.
