BASF ( OTCQX:BASFY ) said on Tuesday it will move forward with the third and final phase of the expansion project for the methylene diphenyl diisocyanate plant at its Verbund site in Geismar, Louisiana, with planned spending of $780M during 2022-25.
The company said the third step of the multiphase expansion that began in 2018 will raise production capacity to 600K metric tons/year to support the ongoing growth of its North American MDI customers.
"As one of BASF's Verbund sites, the Geismar location is ideally suited for the expansion of our MDI production thanks to its existing infrastructure, reliable raw material supply, skilled workforce and strong community support," the company said.
High prices for the natural gas BASF ( OTCQX:BASFY ) uses as a feedstock for petrochemical manufacturing will cut into its profits, Zoltan Ban writes in a bearish analysis published on Seeking Alpha .
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BASF to spend $780M for final phase of MDI expansion at Geismar Site