BASF doubles Geismar MDI capacity with $1bn expansion

BASF’s $1 billion expansion at its Geismar Verbund site in Geismar, Louisiana, has almost doubled annual methylene diphenyl diisocyanate (MDI) capacity to about 600,000 metric tonnes.

BASF, acting through its North American subsidiary, inaugurated a new MDI production facility after completing the investment on schedule. The company describes the project as its largest wholly owned investment project in North America to date.

BASF chairman of the board of executive directors Markus Kamieth said:

“The US has long been a key market for BASF, and this $1bn investment is a strong commitment to our customers and to our future here. With our new world-scale MDI facility in Geismar, we are strengthening our core businesses, driving innovation and bringing more production closer to our customers.”

On the delivery schedule, he added:

“I am particularly proud that our team has delivered this complex project on time and want to thank everyone who made it possible.”

Geismar Verbund is BASF’s largest integrated site in the United States. BASF says the site benefits from established infrastructure and reliable access to materials. The company expects the added volume to meet growing long-term demand from North American customers across polyurethane-related industries, while maintaining competitive and secure MDI supplies for US customers.

How did BASF build the expansion?

Work started in 2018 and unfolded in three stages:

• October 2020: BASF brought a new MDI synthesis unit online in the first phase.
• 2021: The second phase upgraded several upstream production units.
• Third phase: BASF added new upstream units and installed a splitter, incorporating advanced digitalisation technologies and its safety standards. This phase completed the project.
• July 2022: BASF announced the latest expansion phase, which accounted for $780 million of the total investment.

BASF also increased aniline production capacity at Geismar. That step further integrates the site’s value chain and supplies additional raw materials for agricultural chemicals, rubber, dyes and pigments.

The aniline increase is the part that ties the added MDI capacity into a wider production chain at one site.

What does the MDI line serve downstream?

MDI is essential for manufacturing polyurethanes, a material used to improve energy efficiency, durability and performance. BASF identifies these end uses:

• Construction
• Appliances
• Automotive
• Footwear
• Furniture
• Transport

The expansion brings BASF’s MDI production closer to North American customers in those sectors. Its scale matters because the company expects polyurethane-related demand to keep growing over the long term.

The added capacity serves several end markets at once, so operating consistency across the chain matters as much as nominal output.

What does the Equinor gas agreement add?

BASF signed a strategic ten-year agreement with Equinor in July 2025. The deal secures an annual supply of up to 23 terawatt-hours of natural gas, equivalent to two billion cubic metres.

BASF’s announcement does not specify how much of that gas will serve Geismar. It does set a ten-year supply commitment from July 2025, separate from the construction timetable that began in 2018.

The next watch item is the operating rate: how much of the 600,000 metric tonnes of annual capacity BASF converts into sustained MDI production and secure supply for US customers.