BASF studies new MDI chemical plant investment in India

BASF announced on September 22, 2026, that it is evaluating an investment to establish a methylene diphenyl diisocyanate (MDI) production complex in Dahej, Gujarat. The German chemical company is in the advanced stages of a feasibility study. Its subsidiary, BASF India Polyurethanes Private Limited, has already secured an industrial land parcel for the proposed project.

MDI serves as a key raw material for polyurethane products used in building insulation, refrigeration, automotive components, furniture, and consumer goods. The plan follows BASF's Winning Ways strategy and local-for-local approach. The final investment decision depends on the outcome of the study and required regulatory approvals.

The facility would add to BASF's global MDI network, which operates sites in the United States, Belgium, China, and South Korea. Meanwhile, the company's 1 billion dollar MDI expansion project in Geismar, Louisiana, is entering its final phase. BASF already operates an MDI splitter and polyurethane manufacturing facilities at the Dahej location.

Shares of BASF have risen 17.2% over the past year. In comparison, the broader basic materials industry declined 1.7% over the same period.