BASF has inaugurated a new methylene diphenyl diisocyanate (MDI) production facility at its Geismar Verbund site in Louisiana, completing an approximately $1 billion investment that nearly doubles the site's annual MDI production capacity to approximately 600,000 metric tons.
Announced on November 11, 2026, the expansion makes BASF the largest MDI producer in North America, according to the company. BASF describes the project as its largest wholly owned investment in North America to date.
The investment expands regional production of a key polyurethane raw material, with implications for buyers across construction, appliances, transportation, automotive, footwear, and furniture.
The Geismar expansion began in 2018 and progressed through three phases. BASF commissioned a new MDI synthesis unit in 2020, followed by expansions to several upstream units in 2021. The final phase added new upstream units and a splitter to increase production flexibility.
BASF also expanded aniline production at Geismar, strengthening the site’s integrated manufacturing chain. Beyond supporting MDI production, the company says the additional aniline capacity creates more availability for North American customers in agricultural chemicals, rubber, dyes, and pigments.
Geismar is BASF’s largest Verbund site in the United States. Its integrated infrastructure links production processes and raw material supply, supporting the company’s strategy of manufacturing closer to its customers.
The project adds substantial capacity to the North American MDI market and underscores BASF’s long-term commitment to the region’s polyurethane industry. For buyers, a larger domestic production base could support sourcing flexibility and supply planning as the new capabilities are brought into commercial operation.
However, announced capacity does not translate directly into available supply or lower prices. The market impact will depend on operating rates, customer demand, production at other facilities, and trade flows.
Buyers should therefore assess the expansion alongside broader supply-and-demand conditions. The timing and pace of additional commercial volumes will matter, as will demand from major downstream sectors such as construction and durable goods.
BASF’s investment is a significant change to North America’s MDI production landscape. Understanding its commercial implications requires tracking how additional capacity translates into output—and how that output aligns with regional demand.
ResourceWise Compass helps chemicals businesses evaluate market developments through pricing, capacity, trade, supply-and-demand data, and expert commentary. That context helps procurement and commercial teams assess developments such as the Geismar expansion within the wider market.