BASF has commissioned a massive $1 billion methylene diphenyl diisocyanate (MDI) production facility at its Geismar Verbund site in Louisiana.

 

This marks the completion of its largest wholly owned investment project in the United States to date and positioning the German chemicals giant as North America’s largest MDI producer.

 

The new facility, completed on schedule, nearly doubles the Geismar site's annual MDI production capacity to approximately 600,000 metric tons, significantly expanding BASF’s ability to serve growing demand across the region.

 

The inauguration marks a major milestone in BASF’s North American expansion strategy, bringing large-scale production closer to customers and strengthening its position in the global polyurethane value chain.

 

“The United States has long been a key market for BASF, and this $1 billion 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,“ said Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE.

 

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

 

MDI is a critical raw material in the manufacture of polyurethanes, high-performance plastics widely used for their energy efficiency, durability and performance. The material serves a broad range of industries, including construction, appliances, transportation, automotive, footwear and furniture.

 

The expanded Geismar operations are expected to provide BASF customers with a more reliable, competitive and locally integrated supply of MDI, supporting their long-term growth while reducing dependence on supply chains located farther away.

 

“This significant investment reflects our confidence in the continued growth of the polyurethane market and ensures that our customers benefit from a highly reliable, competitive and locally integrated supply source for years to come. With this expansion BASF is taking the lead in MDI production in North America,” said Ramkumar Dhruva, President of BASF`s Monomer Division.

 

The ambitious expansion was executed in three phases, beginning in 2018.

 

BASF commissioned a new MDI synthesis unit in 2020, followed by expansions of several upstream production units in 2021. The final phase involved the construction of additional upstream units and a splitter, incorporating advanced technology, digitalisation and stringent safety standards.

 

The expanded infrastructure will give BASF greater production flexibility while reinforcing the reliability and competitiveness of its MDI supply across North America.

 

The investment also extends beyond MDI. BASF has increased aniline production capacity at Geismar, further strengthening the site's integrated manufacturing network and improving supply availability for customers in the agricultural chemicals, rubber, dyes and pigments industries.

 

Located in Louisiana, Geismar is BASF’s largest Verbund site in the United States. Its integrated infrastructure, dependable raw material supplies and operational synergies make it a strategically important hub for the company's North American manufacturing operations.

 

The latest investment underscores BASF’s broader commitment to the US market, where it operates more than 150 locations across 40 states.

 

In 2025, approximately 90% of BASF’s €13.1 billion in US sales came from products manufactured domestically, highlighting the importance of local production to its business strategy.

 

With the Geismar expansion now operational, BASF is significantly increasing its manufacturing firepower in North America, strengthening its supply position and preparing to capture future growth in the polyurethane market.