BASF is evaluating a potential investment in an MDI (methylene diphenyl diisocyanate) production complex at its Dahej, Gujarat, site in India.

The company is in the advanced stages of a feasibility study and has secured an industrial land parcel for the potential project through BASF India Polyurethanes Private Limited. A final investment decision will depend on the feasibility study and required approvals, BASF said.

MDI is a key building block for polyurethane products used in building insulation and refrigeration as well as automotive components, furniture and consumer goods.

BASF said the potential project would expand its manufacturing footprint in India and support a local-for-local supply model for customers in India and neighboring markets.

The company currently operates MDI production facilities in Geismar, Louisiana; Antwerp, Belgium; Chongqing and Caojing, China; and Yeosu, South Korea. BASF is in the final phase of a roughly $1 billion MDI expansion at Geismar, according to the company.

The Dahej site already includes an MDI splitter and polyurethane production facilities. BASF established the integrated chemical complex in 2014, with the polyurethane hub designed to process crude MDI and serve markets including appliances, automotive, construction and furniture.

The potential MDI project follows other recent capacity investments by BASF in India. In February, the company announced a new production line at its Mangalore site to increase dispersions capacity for the India and Asia-Pacific markets. BASF also began construction of a new Cellasto microcellular polyurethane plant at Dahej in 2025, with startup targeted for the second half of 2026.

Why it Matters

BASF’s potential India investment comes as major producers continue to expand or evaluate MDI capacity in several regions. BASF’s Geismar expansion is designed to increase the site’s MDI output to 600,000 metric tons per year, while Covestro announced plans in June for a 660,000-metric-ton-per-year MDI production train at its integrated Shanghai site. Covestro is also evaluating a similarly sized MDI train at Al Ruwais Industrial City in the United Arab Emirates.

Recent Chemical Processing coverage has also tracked changes elsewhere in the MDI value chain. In June, Covestro launched a European project to develop continuous production of bio-based aniline, a key raw material for MDI, with the technology targeted for semi-industrial demonstration.

Together, the projects encompass new MDI production capacity, regional supply expansion and development of alternative feedstocks and processes for the MDI value chain.