Geismar, Louisiana - BASF said it will start building a new 300 kT/year MDI plant here in early Q2 2018. The new plant is scheduled to come on stream in 2020.
Planning and engineering for the new unit started in 2016 and were completed recently.
BASF said it will double annual MDI capacity in Geismar from 300 kt/year. The investment is to support the growth of its North American MDI customers.
According to the Louisiana Economic Development agency, BASF will invest $150m in the multiphase project. 'With further production units planned for later phases,' said Louisiana Economic Development.
In the past decade BASF has invested over $800m in the site. Louisiana will be paying BASF a $1.65m modernisation tax credit over the next five years.
To further reduce the investment cost 'BASF is expected to utilise Louisiana's Industrial Tax Exemption and Quality Jobs programs,' said Louisiana Economic Development.
