BASF inaugurated its expanded methylene diphenyl diisocyanate (MDI) production facility Nov. 11 at its Verbund site in Geismar, Louisiana, completing a roughly $1 billion project that nearly doubles the site's annual MDI production capacity to approximately 600,000 metric tons. The company said the expansion was completed on schedule and makes BASF the largest MDI producer in North America.

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 production units in 2021. The final phase added additional upstream units and a splitter, along with supporting infrastructure and digital technologies designed to increase production flexibility.

As part of the expansion, BASF also increased aniline production capacity at Geismar. Aniline is an upstream chemical used in MDI manufacturing, and the additional capacity supports the site's integrated production chain while providing more material for other markets, including rubber chemicals, agricultural chemicals, dyes and pigments.

MDI is a primary raw material for polyurethane production, including rigid and flexible foams used in building insulation, appliances, automotive components, furniture and other applications. BASF said the expanded capacity will support polyurethane manufacturers and other customers in North America through increased regional production.

The Geismar project follows other MDI capacity developments from BASF. In September, the company said it was evaluating a potential MDI production 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 required approvals.

Other producers are also planning MDI capacity additions. In June, Covestro announced plans for a 660,000-metric-ton-per-year MDI production train at its integrated manufacturing site in Shanghai, China, and began evaluating 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 continued competition from imported MDI. The Center for the Polyurethanes Industry, part of the American Chemistry Council, reported that regional polyurethane production reached 9.18 billion pounds in 2025, representing a compound annual growth rate of 0.2% from 2023 through 2025.

Import competition also remains a consideration for domestic producers. 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 production capacity as manufacturers navigate changing supply conditions and demand across polyurethane end markets.