Three-phase venture almost doubles the Geismar site’s annual manufacturing capacity to 600,000 metric tons and adds upstream units and a splitter.
BASF inaugurated its expanded methylene diphenyl diisocyanate (MDI) production facility Nov. 11 at its Verbund site in Geismar, Louisiana, completing around $1 billion venture that almost doubles the site’s annual MDI manufacturing capacity to about 600,000 metric tons. The company said the expansion was finished on schedule and makes BASF the largest MDI manufacturer in North America.
The venture was implemented in 3-phases starting in 2018. A new MDI synthesis unit was commissioned in 2020, followed by expansions of numerous upstream manufacturing units in 2021. The final phase added extra upstream units and a splitter, along with supporting infrastructure and digital technologies designed to scale up manufacturing flexibility.
As a part of the expansion, BASF also increased aniline manufacturing potential at Geismar. Aniline is an upstream chemical used in MDI production, and the extra capacity supports the site’s incorporated manufacturing chain even as offering more material for other markets, including of rubber chemicals, agricultural chemicals, dyes and pigments.
MDI is a primary raw material for polyurethane manufacturing, which include rigid and flexible foams utilized in building insulation, appliances, automotive components, furniture and other applications. BASF stated the expanded capacity will support polyurethane producers and other clients in North America by increased regional manufacturing.
The Geismar venture follows other MDI capacity developments from BASF. In September, the company said it was assessing a potential MDI manufacturing complex at its Dahej site in Gujarat, India, after securing industrial land and advancing a feasibility study. A final investment decision remains subject to the study and needed approvals.
Other manufacturers are also planning MDI capacity additions. In June, Covestro declared plans for a 660,000-metric-ton-per-year MDI manufacturing train at its incorporated production site in Shanghai, China, and start comparing a second facility of similar scale in the United Arab Emirates.
Why it Matters
BASF’s expansion comes amid a relatively stable North American polyurethane market and persisted competition from imported MDI. The Center for the Polyurethanes Industry, part of the American Chemistry Council, reported that reported polyurethane manufacturing reached 9.18 billion pounds in 2025, representing a compound annual growth rate of 0.2% from 2023 through 2025.
Import competition also stays a consideration for domestic manufacturers. In May, the U.S. International Trade Commission determined that imports of MDI from China had materially injured the U.S. industry, prompting an antidumping duty order. The Geismar expansion adds regional manufacturing capacity as producers navigate changing supply conditions and demand across polyurethane end markets.
