Germany’s BASF is to invest $150 million in the construction of the first phase of a new chemical complex in North America, doubling its production of methylene duphenyl diisocyanate (MDI) following strong demand.

The complex currently produces 300,000 metric tonnes of MDI. It would like to increase that to almost 600,000 metric tonnes by 2020.

Tom Yura, BASF Senior Vice President, said the new plant would “further strengthen” the company’s position as a leading supplier of chemistry for sustainable solutions.

The multi-phase project in Geismar, Louisiana, will take place over several years, with the first phase seeing the construction of the MDI synthesis unit commencing this spring. Further production units are planned for later phases.

LED engaged BASF in discussions about the potential project prior to the company’s beginning engineering analysis in the fourth quarter of 2016. To secure the BASF project, the State of Louisiana offered a competitive incentive package that includes a $1.65 million Modernisation Tax Credit, to be claimed in equal installments over five years. BASF also is expected to utilise Louisiana’s Industrial Tax Exemption and Quality Jobs programs.

In the past decade, BASF has invested more than $800 million in major capital projects in Ascension Parish, home to the unincorporated community of Geismar. The MDI modernization project will generate 180 construction jobs at peak activity.

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2nd Feb 2018

2nd February 2018