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On July 19, BASF announced that it is advancing the final phase of a methylene diphenyl diisocyanate (MDI) plant expansion project at its Verbund plant in Geismar, Louisiana. With the step-by-step advancement of this MDI capacity expansion project, BASF will increase its production capacity to 600,000 tons per year by 2025, and support the continued growth of its North American MDI customers. The company launched the capacity expansion project in 2018 with a staggered investment in three phases. The investment scale for the final expansion phase from 2022 to 2025 is US$780 million.
Michael Heinz, Chairman and CEO of BASF AG said: "This investment underscores our commitment to the North American market and strengthens BASF's offering in the region. reliability and the competitiveness of our customers' value chain." "As one of BASF's Verbund sites, Geismar's location is ideally suited for the expansion of our MDI capacity thanks to its existing infrastructure, reliable supply of raw materials, Skilled workforce and strong community support."
Utilizing state-of-the-art technology, the expansion will showcase the highest safety standards combined with advanced digital operations. BASF is currently entering the final phase of the expansion, which is scheduled to be completed by the end of 2025.
Ramkumar Dhruva, President Monomers Division, BASF said: "BASF is committed to developing and collaborating with our North American MDI customers, whether in construction and appliances, transportation, automotive, footwear or furniture industries." "With this complex, we will continue to support our North American MDI customers by increasing our capabilities to meet their needs."
The first phase of the expansion project includes construction of a new MDI synthesis unit, which became operational in October 2020. The second phase, which begins operations in 2021, expands on several existing upstream facilities. With the third and final expansion phase underway, including several new upstream units and a fractionation unit, the new overall MDI capacity of the Geismar complex will increase to 600,000 tons/year.
