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BASF has inaugurated a new $1 billion methylene diphenyl diisocyanate (MDI) production facility at its Geismar, Louisiana, manufacturing complex, nearly doubling the site's annual production capacity and establishing the company as North America's largest MDI producer.
The expansion increases annual MDI capacity at the Geismar site to approximately 600,000 metric tons, strengthening the domestic supply of a key raw material used in polyurethane products for furniture, construction, appliances and other manufacturing industries.
Completed on schedule, the project represents BASF's largest wholly owned investment in North America to date.
Expanding Supply for Furniture and Building Products
MDI is a chemical building block used in the production of polyurethane materials, which provide insulation, cushioning, durability and other performance characteristics across a wide range of applications.
For the furniture and building products industries, polyurethane materials play an important role in products ranging from cushioning and insulation to adhesives and other specialized manufacturing applications.
BASF says the additional production capacity will support long-term customer demand while providing a more reliable, locally integrated supply source for North American manufacturers.
“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,” said Dr. Markus Kamieth, chairman of the Board of Executive Directors of BASF SE. “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.”
Ramkumar Dhruva, president of BASF's Monomers Division, said the expansion reflects the company's confidence in the continued growth of the polyurethane market.
“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,” Dhruva said.
Investment Adds Capacity and Production Flexibility
The Geismar expansion was completed in three phases beginning in 2018.
The first phase included commissioning a new MDI synthesis unit in 2020, followed by expansions of several upstream production units in 2021.
The final phase added new upstream processing units and a splitter, incorporating advanced production technology, digitalization and safety systems. According to BASF, the upgrades increase production flexibility while improving the competitiveness and reliability of its North American MDI supply.
The project also expanded aniline production capacity at Geismar, further strengthening the site's integrated chemical manufacturing operations and supporting additional markets, including rubber, agricultural chemicals, dyes and pigments.
Strengthening North American Manufacturing
Geismar is BASF's largest Verbund manufacturing site in the United States. The company's Verbund model integrates production processes, infrastructure and raw material supply to improve manufacturing efficiency.
BASF operates more than 150 locations across 40 U.S. states. In 2025, approximately 90% of its €13.1 billion in U.S. sales came from products manufactured domestically.
The new facility positions BASF to support anticipated growth in polyurethane demand while expanding regional production capacity for manufacturers that depend on these materials.
For more information and project photos, visit BASF's Geismar MDI expansion website.
