Business · India Bureau
BASF eyes MDI production facility in Gujarat's Dahej industrial hub
German chemical giant BASF has acquired industrial land at Dahej in Gujarat for a potential methylene diphenyl isocyanate (MDI) manufacturing complex. The company's final investment decision will depend on the outcome of feasibility studies and regulatory approvals.
LSN India ·
BASF has secured a strategic land parcel in Dahej, one of India's premier petrochemical zones, as it evaluates establishing a dedicated MDI production facility in the state. MDI is a key raw material used in polyurethane foam production for applications ranging from construction insulation to automotive components.
The acquisition of the industrial plot marks a significant step in BASF's expansion plans within India's chemical sector. However, the German multinational has made it clear that progressing to a formal investment decision will require comprehensive feasibility analysis and necessary statutory clearances from relevant authorities.
Dahej, located in the Bharuch district along the Gulf of Cambay, hosts one of Asia's largest clusters of petrochemical manufacturers and processing units. The location offers BASF proximity to raw material suppliers, existing chemical infrastructure, and logistics connectivity to major Indian markets.
The proposed facility would strengthen BASF's production capabilities in India at a time when demand for polyurethane-based products continues to grow across construction, automotive, and consumer goods sectors. The company has not announced timelines for the feasibility study or investment decision.