BASF plans to invest $87 million in the second phase of expansion of MDI plant

BASF, a major player in the polyurethane industry, reported that it would invest $87 million in a plant in gasma, Louisiana, for the second phase of the MDI expansion. For more than 30 years, MDI plant has been the core of its gasma production plant. The company has committed $150 million to the first phase of MDI expansion, which is expected to be completed in the first half of 2020. The second phase of the project will retain 1238 existing BASF jobs at the gasma plant, the company's largest manufacturing base in North America. The project is expected to commence by the end of 2019 and be completed by 2021. The company estimates that the project will support 170 construction jobs. BASF expects to double its MDI output from 300000 t / A to about 600000 T / a through the multi-phase expansion project announced in January 2018, according to the Louisiana Bureau of economic development. MDI is used in the production of polyurethane, which helps to improve the insulation performance of electrical appliances, light materials for automobiles and building energy saving.

"With the development of the U.S. market, BASF needs this investment to support the growth of our existing customers," said Doerr, head of BASF's North American business unit. "Due to the existing infrastructure, competitive raw materials, and state and local government business support, gasma is well positioned to make this investment. This investment also demonstrates our strong commitment to our employees, our community and our investment in Louisiana. " BASF has invested more than $800 million in major capital projects in ascension parish since 2009. For the expansion, the company expects to use the state's industrial tax exemption program. "BASF continues to demonstrate its commitment to our community and local workforce through investment and long-term economic growth partnerships," said Kenny matassa, head of ascension county "BASF has been in Louisiana for more than 60 years, and the recent expansion of its gasma plant will help keep the company competitive in the global market," said John bel Edwards, governor of Louisiana "From low operating costs to sophisticated infrastructure and logistics, Louisiana provides the assets needed to succeed in a variety of manufacturing specialties.

We welcome the latest expansion of the BASF gasma plant and look forward to the continued economic impact of the company's operations in ascension and Baton Rouge. Ascension county is still an ideal place for the chemical manufacturing industry, and we are glad BASF continues to choose the gasma plant as a place for growth and development. " Katemac Arthur, President and CEO of ascension county economic development company. Adam Knapp, chairman and CEO of Baton Rouge chamber of Commerce, said: "the announcement of phase II expansion is good news for the capital region, and also shows BASF's confidence in the future of our economy. A strong partnership from the local to the state level is important to create a business friendly environment, and we look forward to our allies at ascension county economic development to assist BASF in this process. "