Business · Companies · 5 hrs ago
BASF doubles MDI capacity at its Louisiana site
BASF has doubled MDI production capacity at its Geismar site in Louisiana, bringing the plant’s annual capacity to 600,000 tonnes.
MDI is a chemical ingredient used to make plastics found in insulation, mattresses, car seats and adhesives.
The expansion cost about one billion euros and is BASF’s largest standalone investment in North America.
The company says rising US demand, including for energy-efficient buildings and appliances, is driving the investment.
China’s Wanhua remains the industry’s biggest rival, with 3.8 million tonnes of annual capacity at the end of 2025, about a third of the global total.
Wanhua has announced plans to add 700,000 tonnes of annual capacity at its Fujian site by the second quarter of 2026.
That planned increase could lift Wanhua’s capacity to 4.5 million tonnes, while BASF says its larger US plant will help secure customer supplies and strengthen its position.
BASF has opened a new MDI production facility at its Geismar site in Louisiana.
The expansion nearly doubles the site’s annual MDI capacity to about 600,000 tonnes.
BASF said the investment strengthens its position as an MDI supplier in North America and brings production closer to customers.
The project also increased aniline production capacity at Geismar.
Reports describe the investment as about $1 billion, while WirtschaftsWoche reports a cost of about €1 billion for the three expansion stages.
- Who
- BASF, the German chemical company.
- What
- It opened a new MDI facility, nearly doubling annual capacity at Geismar to about 600,000 tonnes.
- When
- Wednesday, November 11, 2026.
- Where
- BASF’s site in Geismar, Louisiana, United States.
- Why
- BASF said the expansion responds to customer demand, strengthens its market position and brings production closer to customers.
This story does not have two clearly opposing sides.
BASF began the Geismar expansion in three stages.
BASF started operating a new MDI synthesis plant.
BASF expanded existing facilities used to make the required precursor materials.
BASF opened the new facility, completing the expansion.
- Location
- Geismar, Louisiana
- Annual MDI capacity
- About 600,000 tonnes after the expansion
- Previous annual capacity
- 300,000 tonnes
- Investment
- About $1 billion, according to Handelsblatt and cash.ch
- Aniline
- Production capacity at Geismar also increased
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What people are saying
The United States has long been a key market for BASF.
With our new large-scale MDI facility in Geismar, we are strengthening our core businesses, driving innovation and bringing our production closer to our customers.