Reports related to this article:
Project(s): View 3 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released April 14, 2023 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Global chemical giant BASF SE (Ludwigshafen, Germany) saw an overall decline in sales volumes in first-quarter 2023, but enjoyed strong demand in its Agricultural and Chemicals, Materials and Surface Technologies businesses. As part of its five-year capital spending (capex) plan, BASF is earmarking 4 billion to 4.5 billion (US$4.42 billion to US$4.98 billion) for its North American activities, led by a major capacity expansion in Geismar, Louisiana. Industrial Info is tracking more than $1.1 billion worth of active projects from BASF in the U.S. and Canada, about 70% of which is attributed to a pair of projects that are set to begin construction within the next 12 months.
Click on the image at right for a graph detailing BASF's active projects in the U.S. and Canada, by industrial sector..
"Between 2023 and 2027, we plan [global] capital expenditures of 28.8 billion (US$31.84 billion)," said Hans-Ulrich Engel, the supervisory board member for BASF, in a recent quarterly earnings-related conference call. "Capex in this period will be higher than in the prior planning period from 2022 to 2026, in which we budgeted 25.6 billion (US$28.3 billion)."
In North America, BASF is investing heavily in its production of methylene diphenyl isocyanate (MDI), an important intermediary in the manufacture of urethane-based materials as varied as furniture and shoes. The company is expanding capacity at its chemical plant in Geismar, Louisiana, to double its production of MDI from 300,000 to 600,000 tons per year. The long-anticipated project is in its engineering phase and is expected to begin construction next spring. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can learn more from a detailed project report.
"Over the past years, both MDI and TDI [toluene diisocyante] have gone through significant demand and profitability cycles," said Martin Brudermuller, the chief executive officer of BASF, who also spoke in the conference call. "Overall, market demand for MDI is healthy as expected and continues to grow."
BASF also is preparing for an expansion of its specialty chemicals plant in Cincinnati, Ohio, which produces alkyl polyglucosides (APG) surfactants used in body wash, shampoo, laundry and surface-cleaning products. APG is a milder alternative to ingredients commonly used in these products, and it has seen its demand climb following the COVID-era prioritization of household cleaning items. Subscribers can learn more from a detailed project report.
Battery-material development also is a major focus for BASF going forward, with a significant chunk of its global capex plan tagged for this rapidly growing sector, according to Brudermuller: "We are expanding our global presence in growing market segments--for example, in the battery materials value chain. Our transformation towards 'net zero' will enable us to provide our customers with a complete portfolio of products that have reduced, or even net zero, carbon footprint."
BASF is weighing its options for a proposed cathode active-materials plant in Becancour, Quebec, which would serve the company's long-term goal to build an integrated, closed-loop battery materials ecosystem in every major global region. If approved, the 100,000-ton-per-year plant could be commissioned as early as 2025. Subscribers to Industrial Info's GMI Metals & Minerals Project Database can learn more from a detailed project report.
One factor weighing on BASF's global net income in the first quarter of 2022 was its 67% ownership of Wintershall Dea (Kassel, Germany), an oil and gas producer heavily active in Europe's North Sea. Wintershall reported a net loss of 4.8 billion euros (US$5.1 billion) for full-year 2022, including 7 billion euros (US$7.74 billion) in one-time losses related to its Russian upstream and midstream businesses. Wintershall pulled out of its long-time partnership with Russia last year, which had accounted for half of its global production.
Impairments incurred by BASF on its role in Wintershall took a bite out of its first-quarter 2022 results, but were absent in this year's first quarter. But Wintershall announced recently it was moving on, with plans to build up its carbon capture and storage (CCS) business in its North Sea operations. Subscribers to Industrial Info's GMI Oil & Gas Production Project Database can click here for a full list of detailed reports for Wintershall projects worldwide.
The strong quarterly results were welcome news for BASF, which announced earlier this year it would cut 2,600 European jobs to reduce costs caused by prolonged high energy prices. For more information, see March 6, 2023, article - BASF Cutting 2,600 European Jobs to Combat Energy Crisis.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active U.S. and Canadian projects from BASF.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing BASF's active projects in the U.S. and Canada, by industrial sector.."Between 2023 and 2027, we plan [global] capital expenditures of 28.8 billion (US$31.84 billion)," said Hans-Ulrich Engel, the supervisory board member for BASF, in a recent quarterly earnings-related conference call. "Capex in this period will be higher than in the prior planning period from 2022 to 2026, in which we budgeted 25.6 billion (US$28.3 billion)."
In North America, BASF is investing heavily in its production of methylene diphenyl isocyanate (MDI), an important intermediary in the manufacture of urethane-based materials as varied as furniture and shoes. The company is expanding capacity at its chemical plant in Geismar, Louisiana, to double its production of MDI from 300,000 to 600,000 tons per year. The long-anticipated project is in its engineering phase and is expected to begin construction next spring. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can learn more from a detailed project report.
"Over the past years, both MDI and TDI [toluene diisocyante] have gone through significant demand and profitability cycles," said Martin Brudermuller, the chief executive officer of BASF, who also spoke in the conference call. "Overall, market demand for MDI is healthy as expected and continues to grow."
BASF also is preparing for an expansion of its specialty chemicals plant in Cincinnati, Ohio, which produces alkyl polyglucosides (APG) surfactants used in body wash, shampoo, laundry and surface-cleaning products. APG is a milder alternative to ingredients commonly used in these products, and it has seen its demand climb following the COVID-era prioritization of household cleaning items. Subscribers can learn more from a detailed project report.
Battery-material development also is a major focus for BASF going forward, with a significant chunk of its global capex plan tagged for this rapidly growing sector, according to Brudermuller: "We are expanding our global presence in growing market segments--for example, in the battery materials value chain. Our transformation towards 'net zero' will enable us to provide our customers with a complete portfolio of products that have reduced, or even net zero, carbon footprint."
BASF is weighing its options for a proposed cathode active-materials plant in Becancour, Quebec, which would serve the company's long-term goal to build an integrated, closed-loop battery materials ecosystem in every major global region. If approved, the 100,000-ton-per-year plant could be commissioned as early as 2025. Subscribers to Industrial Info's GMI Metals & Minerals Project Database can learn more from a detailed project report.
One factor weighing on BASF's global net income in the first quarter of 2022 was its 67% ownership of Wintershall Dea (Kassel, Germany), an oil and gas producer heavily active in Europe's North Sea. Wintershall reported a net loss of 4.8 billion euros (US$5.1 billion) for full-year 2022, including 7 billion euros (US$7.74 billion) in one-time losses related to its Russian upstream and midstream businesses. Wintershall pulled out of its long-time partnership with Russia last year, which had accounted for half of its global production.
Impairments incurred by BASF on its role in Wintershall took a bite out of its first-quarter 2022 results, but were absent in this year's first quarter. But Wintershall announced recently it was moving on, with plans to build up its carbon capture and storage (CCS) business in its North Sea operations. Subscribers to Industrial Info's GMI Oil & Gas Production Project Database can click here for a full list of detailed reports for Wintershall projects worldwide.
The strong quarterly results were welcome news for BASF, which announced earlier this year it would cut 2,600 European jobs to reduce costs caused by prolonged high energy prices. For more information, see March 6, 2023, article - BASF Cutting 2,600 European Jobs to Combat Energy Crisis.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active U.S. and Canadian projects from BASF.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
