BASF’s authoritative statement: 80% of the chemical industry’s growth over the next decade will be concentrated in the Asia-Pacific region.

Recently, BASF released its detailed 2024 annual report, revealing that the Asia-Pacific region possesses exceptional development potential and will be a key market for strategic investment. BASF’s 2024 Investment: 52% in Asia-Pacific, up 34.17% year-on-year—A Key Focus In 2024, BASF actively expanded its investment strategy, focusing on three high-potential core markets—the Asia-Pacific region, North America, and Europe—to reinforce its global position. Total investment reached €6.506 billion, an increase of 10.95% year-on-year. From a geographical perspective, the Asia-Pacific region—especially China—accounts for approximately 50% of the global chemical market and serves as the primary engine driving global chemical market growth. It is expected to retain strong appeal in the future. BASF forecasts that by 2035, 80% of global chemical industry growth will be concentrated in this region. To proactively align with this growth trend and meet the rising demand from rapidly developing industries across the region, BASF is advancing critical infrastructure projects—including its new integrated site in Zhanjiang, whose core structures are scheduled for completion in 2025. Starting in 2025, the Zhanjiang site will operate entirely on renewable electricity. Additionally, BASF continues to advance other Asian sites—for instance, the Kuantan expansion project in Malaysia, developed jointly with PETRONAS Chemicals Group Berhad. In 2024, BASF invested €3.383 billion in Asia, representing 52% of its total investment and marking a 34.17% year-on-year increase. In North America, BASF invested €1.171 billion in 2024—a 24.82% increase year-on-year; in Europe, investment totaled €1.822 billion, down 20.34% year-on-year. In North America, BASF’s priority is expanding its isocyanate value chain capacity at its Geismar, Louisiana site. This project is scheduled to commence operations in 2026, raising BASF’s North American methylenediphenyl diisocyanate (MDI) production capacity from the current 380,000 tonnes per year to approximately 600,000 tonnes per year. This MDI expansion represents BASF’s largest single investment in North America. Moreover, BASF made significant investments at its European sites. In 2024, a world-class alkylation ethanolamine production plant commenced operations at BASF’s integrated site in Antwerp, Belgium—increasing BASF’s global production capacity for this product and its derivatives by nearly 30%. BASF’s Projects Launched in 2024 and 2025: In 2024, Europe ranked first as BASF’s largest revenue-generating market, followed by North America and Asia. Revenues from all three major markets declined year-on-year, whereas revenues from South America, Africa, and the Middle East rose by 26.68% year-on-year. Asia’s share of total revenue remained broadly stable. China accounts for 86% of global chemical industry growth. From a global market perspective, industrial production grew by 1.5% in 2023 and accelerated to 2.1% in 2024. In advanced economies, industrial production was virtually stagnant; conversely, emerging markets demonstrated robust growth—reaching 3.9% in 2024, up from 2.9% in 2023.

BASF expands MDI production capacity!

The expansion project adds new annual production capacities of: 98,949 tonnes for nitric acid; 80,000 tonnes for nitrobenzene (in the nitrobenzene/aniline unit); 50,000 tonnes for aniline (in the nitrobenzene/aniline unit); 128,000 tonnes for methylenedianiline (MDA) (in the MDA/crude MDI unit); and 161,760 tonnes for crude MDI (in the MDA/crude MDI unit). Upon completion of the expansion, SBPC’s nitric acid unit capacity will reach 514,635 tonnes/year; the nitrobenzene/aniline unit’s nitrobenzene capacity will rise to 320,000 tonnes/year and aniline capacity to 230,000 tonnes/year; and the MDA/crude MDI unit’s MDA capacity will increase to 320,000 tonnes/year and crude MDI capacity to 401,760 tonnes/year. Capacity for the dinitrotoluene (DNT) unit (259,907 tonnes/year), the toluene diisocyanate (TDI) unit (220,000 tonnes/year), and the methylenediphenyl diisocyanate (MDI) unit (300,000 tonnes/year) remains unchanged. This expansion fully leverages existing process equipment from the current nitric acid, nitrobenzene/aniline, and MDA/crude MDI units. Aside from adding a small number of new pieces of equipment in the MDA/crude MDI unit area, the nitric acid and nitrobenzene/aniline units achieve capacity increases through localized equipment modifications. Overall, this project effectively reduces capital expenditure while delivering high economic returns. BASF’s MDI Capacity On December 19, 2024, the Chongqing Municipal Development and Reform Commission announced that the Chongqing BASF Polyurethanes MDI Optimization and Upgrade Project had entered the trial operation phase. Chongqing BASF’s existing MDI capacity stands at 400,000 tonnes/year; following this expansion, the site’s capacity will reach 530,000 tonnes/year. Adding the 130,000-tonne/year expansion in Chongqing to BASF’s existing MDI capacity brings its total MDI capacity to 2.02 million tonnes/year. BASF’s MDI capacity footprint is as follows (excluding the newly announced expansion capacity at Shanghai BASF): Shanghai BASF Polyurethanes Co., Ltd. Shanghai BASF Polyurethanes Co., Ltd. (SBPC) was established in March 2003 and is located on Plot D1—the easternmost section—of the Shanghai Chemical Industry Park. SBPC was one of the original three Sino-foreign joint ventures comprising the Shanghai United Isocyanates Project. The Shanghai United Isocyanates Project comprises Shanghai Lianheng Isocyanates Co., Ltd. (SLIC), Shanghai Huntsman Polyurethanes Co., Ltd. (HPS), and Shanghai BASF Polyurethanes Co., Ltd. (SBPC). All three companies were approved and constructed simultaneously, each operating as an independent legal entity. On July 28, 2023, SLIC, HPS, and SBPC jointly signed an asset transfer agreement under which SLIC dismantled and sold off its assets separately; SBPC acquired SLIC’s crude MDI (cMDI) unit and its nitrobenzene/aniline unit. The asset acquisition and restructuring were completed on February 1, 2024. Following the merger, SBPC occupies approximately 290,000 square meters and focuses primarily on phosgene-based products, producing a portfolio of polyurethane products—including toluene diisocyanate (TDI) and methylenediphenyl diisocyanate (MDI)—as well as inorganic acids such as nitric acid.

BASF Starts Final Line of Geismar MDI Expansion

Oct 10, 2026

BASF has successfully started up the final phase of its $1 billion MDI expansion project in Geismar, Louisiana, boosting annual capacity to 600,000 metric tons. This positions BASF as the largest MDI producer in North America.

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BASF Starts Final Line of Geismar MDI Expansion

BASF Starts Final Line of Geismar MDI Expansion

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