BASF chemicals giant inaugurates $1 billion plant in Louisiana

BASF has completed a $1bn project to nearly double MDI production capacity at its Geismar site in Louisiana to 600,000 metric tonnes annually. The expansion, completed on schedule, aims to meet growing demand in North America for polyurethanes used in various industries. BASF also increased aniline production capacity, integrating its value chain further.

BASF opened a $1 billion methylene diphenyl diisocyanate (MDI) production facility in Geismar, its largest North American investment. The site's annual MDI capacity will nearly double to 600,000 metric tons, according to the company. BASF aims to strengthen its core businesses and bring production closer to customers.

BASF SE completed a $1.0B expansion of its Geismar MDI facility, doubling capacity to 600,000 metric tons annually. The project, started in 2018, is expected to generate returns based on demand and utilization.

Jefferies downgraded BASF to 'underperform,' forecasting 2027 EBITDA of €7.4B, 5% below consensus, citing weak chemical spreads and oversupply. It set a €44 price target, noting higher European gas prices and earnings headwinds. BASF's acquisition bid for Evonik was also discussed, with Jefferies suggesting an offer above €26/share would be dilutive. BASF reports Q4 results on Feb. 26, with 2027 EBITDA guidance as the focus.

Evonik Industries rejected a takeover approach from BASF, opting to remain independent. BASF had proposed a valuation of over €11 billion, up from €10.3 billion, with commitments to preserve jobs and production sites. Evonik's board reviewed the offer but decided against negotiations, reaffirming its strategic independence.

Evonik Industries' shares rose 2.6% after Reuters reported BASF may submit a new takeover offer. BASF's initial offer of €22.15 per share was rejected in September. Citi analysts estimate a potential €25 per share offer could boost BASF's earnings and cash flow by 20% through 2030, but may reduce return on invested capital to 9%.