BASF evaluates MDI plant investment in India
- BASF is in advanced stages of a feasibility study for an MDI production complex and has secured industrial land in Dahej, Gujarat through BASF India Polyurethanes Private Limited.
- MDI is a key feedstock for polyurethanes used in insulation, refrigeration, automotive components, furniture and consumer goods.
- Final investment decision will depend on the feasibility study outcome and all necessary approvals.
- BASF is commissioning a $1 billion MDI expansion in Geismar, US; other MDI sites include Antwerp (Belgium), Chongqing and Caojing (Shanghai), China, and Yeosu (South Korea).
Project overview
BASF is evaluating a potential MDI (methylene diphenyl diisocyanate) production complex in India and has secured an industrial land parcel in Dahej, Gujarat, through its subsidiary BASF India Polyurethanes Private Limited. The company says it is in the advanced stages of a feasibility study. MDI is identified as a key building block for polyurethane products across applications such as building insulation, refrigeration, automotive components, furniture and consumer goods.
Strategic rationale
BASF frames the move as part of its strategy to strengthen core businesses, expand its manufacturing footprint in a high-growth market and follow a local-for-local approach to serve customers in India and neighbouring markets with locally produced MDI. The company links the evaluation to supporting customer growth and improving supply reliability.
Global MDI footprint and next steps
The final investment decision will be taken after the feasibility study and is subject to required approvals. BASF notes the commissioning of its $1 billion MDI expansion in Geismar, US, is entering its final phase and says a project in India would complement its existing MDI network, which includes facilities in Antwerp, Chongqing, Caojing (Shanghai) and Yeosu.
Source: BASF