BASF announces $19.8 million Geismar plant expansion; production shifting from Europe to Ascension Parish

Staff Report
BASF's Geismar site is shown in a file photo.

BASF will invest $19.8 million in its Ascension Parish manufacturing complex to increase production of the chemical intermediates HEP and NOP, which are part of the global supply chain for inkjets, dishwashing detergents, crop protectors, and automotive and electronic products.

With the expansion, BASF will retain more than 1,000 existing jobs at the Geismar facility, according to a Louisiana Economic Development news release. The company estimates the project will result in 58 construction jobs.

“For the second time in a matter of weeks, BASF has made a significant investment in the expansion of its Geismar facility, securing the jobs of more than 1,000 skilled Louisiana workers,” Gov. John Bel Edwards stated. “This project is a testament to the logistical advantages our state offers to manufacturers seeking access to global markets, and reinforces our state’s unique ability to provide a wide range of supply chain solutions.”

On July 19, BASF announced a $780 million project to double production capacity at the Geismar complex. This latest investment will modify, retrofit and optimize an underutilized unit within the existing facility to manufacture N-(2-Hydroxyethyl)-2-Pyrrolidone (HEP) and N-Octyl-2-Pyrrolidone (NOP), which the company currently produces in Europe.

“The news of BASF announcing another investment in the Geismar site is fantastic,” said Jerry Lebold, BASF’s Senior Vice President and General Manager at the Geismar site. “With more than $2 billion in new projects and improvements since 2009, Geismar is positioned for success well into the future.”

To secure the project, the State of Louisiana offered BASF a performance-based Retention and Modernization Program award of $300,000 to be paid over a five-year period. The company is also expected to utilize the state’s Industrial Tax Exemption program.

“We applaud BASF for improving efficiencies that lead to sustained employment opportunities here in Geismar,” said Kate MacArthur, president and CEO of Ascension Economic Development Corp., “and appreciate the commitment they show to our community.”

BASF Corporation, headquartered in Florham Park, N.J., is the North American affiliate of BASF SE, Ludwigshafen, Germany. BASF has more than 16,700 employees in North America and had sales of $25.9 billion in 2021.

Louisiana Economic Development is responsible for strengthening the state’s business environment and creating a more vibrant economy.