BASF Expansions: Ups capacity of MDI to 600 kt in US; In final approval for construction of EUR10 bn Guangdong site

German chemical firm BASF says it is moving forward with the final phase of the expansion project for the methylene diphenyl diisocyanate (MDI) plant at its Verbund site in Geismar, Louisiana, US. With this third step of its multiphase capacity expansion, BASF will increase production capacity to 600,000 tonnes/year by the middle of the decade and support the ongoing growth of its North American MDI customers. The company kicked off the expansion project in 2018 with a staggered approach consisting of three investment phases. The investment in the final expansion phase from 2022 to 2025 amounts to US$780 million.

The first phase of the expansion project involving the construction of a new MDI synthesis unit was put in operation in October of 2020. The second phase, which started operations in 2021, expanded several existing upstream units. With the third and final expansion phase, which includes several new upstream units and a splitter, the new overall MDI output of the Geismar complex will increase to 600,000 tonnes.

“This investment underlines our commitment to North America and strengthens BASF’s supply reliability and the competitiveness of our customers’ value chains in the region,” said Michael Heinz, Chairman/CEO, BASF Corporation. “As one of BASF’s Verbund sites, the Geismar location is ideally suited for the expansion of our MDI production thanks to its existing infrastructure, reliable raw material supply, skilled workforce and strong community support.”

Leveraging technology, the expansion will showcase the highest safety standards combined with advanced digitalisation in its operations, adds BASF that is now entering the final phase of the expansion, targeted for completion by the end of 2025.

“BASF is committed to growing and partnering with our North American MDI customers, be it in the construction and appliance, transportation, automotive, footwear or furniture sectors,” said Ramkumar Dhruva, President of BASF’s Monomers division. “With this integrated facility, we will continue to support our North American MDI customers by growing our capacity to meet their needs.”

In related news, BASF says it has given final approval for the construction of the planned Verbund site in Zhanjiang in the southern Chinese province of Guangdong. The project is on schedule, it adds. The focus will now be on building the core of the Verbund, which includes a steam cracker and several downstream plants for the production of petrochemicals and intermediates, among others. BASF will invest up to EUR10 billion by 2030 to build the new site.

In 2020, BASF started construction of the first plants at the planned integrated site in Zhanjiang, China, which will be BASF's third-largest site worldwide after Ludwigshafen, Germany, and Antwerp, Belgium. The site will be built in several phases and is expected to be fully operational by 2030.

The first plant for the production of engineering plastics is currently starting up and a plant for the production of thermoplastic polyurethanes (TPU) will come on stream in 2023.

(PRA)

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