BASF Germany Plans to Build MDI Production Complex in Gujarat, India

en.Wedoany.com Reported - On September 21, BASF Germany announced that it is advancing the investment evaluation for a diphenylmethane diisocyanate (MDI) production complex in India, and the project has now entered the advanced feasibility study stage. BASF, through its Indian subsidiary BASF India Polyurethanes Private Limited, has acquired an industrial land parcel in Dahej, Gujarat, reserving a site for subsequent project construction. The final investment decision will be made based on the feasibility study results and will require relevant approvals.

MDI is one of the core raw materials for polyurethane materials, with downstream applications widely used in building insulation, refrigeration equipment, automotive parts, furniture, and consumer goods. BASF stated that urbanization, infrastructure construction, and manufacturing expansion in India are driving demand growth for high-performance materials, and the company plans to expand its supply capacity to India and surrounding markets through localized production.

The proposed project is located in Dahej, an area that is already an important integrated chemical base for BASF in India. BASF's existing Dahej site is already equipped with MDI separation units and polyurethane production facilities, and also hosts production units for care chemicals, polymer dispersions, and other products. The site was commissioned in 2014, covers approximately 23.44 hectares, and involved an initial investment of approximately 10 billion Indian rupees, making it one of BASF's larger greenfield investment projects in India. After acquiring the additional industrial land, BASF plans to further evaluate the expansion of MDI upstream production capacity based on its existing industrial foundation.

BASF currently operates multiple MDI production facilities globally, including sites in Antwerp, Belgium; Chongqing and Shanghai Caojing, China; and Yeosu, South Korea. At the same time, the company's USD 1 billion MDI expansion project in Geismar, Louisiana, United States, is entering the final stage before commissioning. BASF stated that if the India project is ultimately approved, it will become an important node in the next step of expansion of its global MDI production network and will strengthen regionalized supply capacity in the Asian market.

As of the end of 2025, BASF had 2,435 employees, 8 production sites, and more than 40 office locations in India, and achieved sales of approximately EUR 2.3 billion in India in 2025. The existing integrated site in Dahej has already established a polyurethane production foundation, and if the new MDI complex completes its final investment decision, it will further extend upward into the production of core upstream raw materials.