BASF marks the inauguration of its MDI production expansion in Geismar, Louisiana, November 11, 2026. Photo: BASF, provided through its official press-photo resources.
BASF inaugurated a roughly $1 billion chemical production expansion in Geismar, Louisiana, Wednesday, completing a multiyear investment that the company says almost doubles the site’s annual capacity for a material used in insulation, appliances, vehicles and furniture.
The expansion brings annual production capacity for methylene diphenyl diisocyanate, known as MDI, to approximately 600,000 metric tons. BASF describes the project as its largest wholly owned investment to date in North America and says the added capacity makes it the region’s largest MDI producer.
Those are company figures and rankings. Production capacity measures what a facility is equipped to produce, not how much it has already sold or manufactured.
A raw material behind everyday products
MDI is used to make polyurethanes, a class of plastics used across construction, appliances, transportation, footwear and furniture. BASF says the added capacity is intended to support customers in those markets with a local, integrated supply.
The investment is a manufacturing expansion, rather than the launch of a consumer product. Its significance for buyers lies in the amount and location of chemical supply available for their own production.
BASF Chief Executive Markus Kamieth said the investment reflects the company’s commitment to the U.S. market and brings more production closer to customers. Ramkumar Dhruva, president of BASF’s Monomers division, said it reflects confidence in continued growth in the polyurethane market.
Three phases since 2018
The project began in 2018 and was carried out in three phases, according to BASF. A new MDI synthesis unit was commissioned in 2020, followed by expansions of upstream units in 2021. The final phase added upstream units and a splitter.
BASF said the completed expansion increases production flexibility. The company also expanded aniline production at Geismar, supporting its integrated manufacturing chain and adding availability for North American customers in agricultural chemicals, rubber, dyes and pigments.
The company describes Geismar as its largest integrated Verbund site in the United States. Such sites connect production operations through shared infrastructure and raw-material flows.
Completed investment, not a demand forecast
Wednesday’s event marks completion of the investment program. It does not establish future sales, plant utilization or customer demand. BASF’s expectations for market growth and supply benefits remain its business outlook.
The company says it operates more than 150 locations across 40 U.S. states. The Geismar expansion adds to that manufacturing footprint at a time when BASF is emphasizing production close to its customers.
Source: BASF announcement, November 11, 2026. Official inauguration information and press photos.
JBizNews Desk | Business
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