BASF announced a final investment decision on a $780 million project to double production capacity at its chemical manufacturing complex in Ascension Parish, marking the beginning of the third and final phase of an expansion plan announced in 2018. Counting all three expansion phases and other site investments, BASF will retain more than 1,000 existing jobs and add 37 new direct jobs with average annual salaries from $86,600 to $105,600 per year, plus benefits. LED estimates that the total project plan will result in 147 new indirect jobs, for a total of 184 new jobs in the Capital Region.
Upon completion, BASF’s Geismar Verbund site – signifying the physical integration of production, market platforms and technologies that tie the business together – will be able to produce 600,000 metric tons per year of methylene diphenyl diisocyanate (MDI). MDI is an important component for polyurethanes, a versatile, lightweight plastics material used for insulation and a variety of other industrial and consumer products.
“BASF is one of the largest chemical companies in the world, and this substantial reinvestment in its Geismar complex speaks volumes about the strength of Louisiana’s advanced manufacturing sector,” Gov. John Bel Edwards said. “By increasing production of a material vital to the creation of energy-efficient products, BASF has positioned our state as an important contributor to the global sustainability supply chain. That is a win for workers and their families in the Capital Region, and for the state’s economy as a whole.”
The company said in its announcement that the seven-year expansion project – representing more than $1 billion in combined capital investment – will allow it to meet growing North American demand for its products in construction, appliance, transportation, automotive and other sectors.
To secure the final phase of the BASF expansion project, the State of Louisiana offered a competitive incentive package that includes a $1 million Retention and Modernization Tax Credit, to be claimed in equal installments over five years. BASF also is expected to utilize Louisiana’s Industrial Tax Exemption and Quality Jobs programs.
Leave A Comment