By Liz White, UT staff
Geismar, Louisiana-BASF plans to build two new polyol reactors and revamp two existing ones to raise production of polyols at its integrated site in Geismar in the US by 100 kilotonnes per annum (ktpa), the group announced 6 April.
Included in the expansion are a new logistics centre for polyurethane basic products and other chemicals. BASF said its total investment in these additions will be about $125 million.
The chemicals giant said it will also transfer a major part of the polyol production from Wyandotte, Michigan, to Geismar. Including external toll production and purchases, BASF said its total polyols capacity in the US will, by 2008, rise to 350 ktpa, from 250 ktpa currently.
The group added that its expanded capacity will "better support existing business" and to a large extent replaces toll arrangements and purchases.
At the same time, BASF said, it has also completed acquisition of a dinitrotoluene (DNT) plant in Geismar from Air Products and Chemicals Inc. for $155 million. DNT is an important raw material for toluene diisocyanate (TDI), used to make flexible foam. The acquired DNT plant will supply BASF's TDI plant at Geismar, which has annual capacity of 160 kt.
Our investments at the Geismar site underline our commitment to the polyurethane market in North America," said Bill Bernstein, group vice president of BASF's polyurethanes business in North America, in BASF's statement.
"These measures will improve the effectiveness of our polyol and TDI manufacturing at Geismar, and will secure a reliable supply of high-quality products to our customers in the long run," Bernstein continued.