One of leading behemoths in the bulk and specialty chemicals industry, BASF has reportedly decided to invest in the capacity expansion of its MDI (methylene diphenyl diisocyanate) plant in Geismar at Louisiana. Company officials declare that the expansion will take place in several phases and will demand a few years for completion. Apparently, in the first phase of development, BASF will invest more than $150 million to construct an MDI synthesis unit.
Reports cite that the development of the new MDI production plant will help strengthen BASF’s stance in bulk and specialty chemicals market. Elaborating on the same, one of the firm’s senior officials, Tom Yura, was quoted stating that this investment also demonstrated the company’s strong commitment toward their employees and the community in Louisiana.
As per reliable sources, the State of Louisiana has offered a competitive incentive package including a USD 1.65mn Modernization Tax Credit to secure BASF’s project. In fact, BASF is also looking forward to utilizing the state’s Industrial Tax Exemption and Quality Jobs programs. The Governor of Louisiana, John Bel Edwards, has been quoted stating that the company is rather proud of its decision to reinvest in its chemical complex at Geismar, which is incidentally one of the most remarkable economic drivers in Louisiana,
Prior to this capacity expansion, BASF has also invested USD 800 million in several capital projects in Ascension Parish. Quoting Kenny Matassa, the President of Ascension Parish, BASF’s investment in Ascension Parish is firm evidence that the parish is a crucial site for lucrative business opportunities.
Through the expansion of its MDI project, BASF eventually may double its production capacity of energy efficient methylene diphenyl diisocyanate while simultaneously generating job opportunities. Having held the tag of being one of the foremost bulk and specialty chemicals industry player in the region, BASF aims to further consolidate its product portfolio and position in the state of Louisiana.
