BASF SE (Ludwigshafen, Germany) today celebrated the inauguration of its new methylene diphenyl diisocyanate (MDI) production facility at the company’s Verbund site in Geismar, Louisiana. The ceremony marks the on-time completion of BASF’s largest wholly owned investment project to date in North America, with a total volume of approximately $1 billion. The expansion almost doubles the annual MDI production capacity at the Geismar site to approximately 600,000 metric tons.
“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 Dr. 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 key raw material used in the production of polyurethanes, a high-performance plastic contributing to energy efficiency, durability and performance in a wide range of applications. The additional production capacity in Geismar will support the long-term growth of BASF’s customers in applications including construction, appliances, transportation, automotive, footwear, furniture and other polyurethane-based industries.
“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 Monomers Division.
The project was executed in three phases beginning in 2018. A new MDI synthesis unit was commissioned in 2020, followed by expansions of several upstream units in 2021. The final phase included new upstream units and a splitter, incorporating state-of-the-art technology, advanced digitalization and the highest safety standards. The additional capabilities increase production flexibility and strengthen BASF’s reliable and competitive supply of MDI in North America. As part of the expansion, BASF also increased its aniline production capacity in Geismar, strengthening the site’s integrated value chain and creating additional availability to serve North American customers in the agricultural chemicals, rubber, and dyes and pigments industries.
The Geismar site in Louisiana is BASF’s largest Verbund site in the United States, benefiting from integrated infrastructure, reliable raw material supply and operational synergies. BASF has a strong local footprint in the United States, with more than 150 locations across 40 states. In 2025, approximately 90% of the company’s €13.1 billion in U.S. sales came from products manufactured in the country.