BASF Adds $1 Billion of MDI Capacity in Louisiana as Jefferies Turns Bearish on the Stock

Published on 11/14/2026 at 16:02 | Editorial boerse-global.de

BASF commissioned a roughly $1 billion MDI plant in Geismar, nearly doubling site capacity to about 600,000 tonnes, as Jefferies cut the stock to Underperform.

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BASF has officially commissioned a new MDI production plant at its integrated Verbund site in Geismar, Louisiana, putting roughly $1 billion of investment to work. The new facility nearly doubles the site's annual MDI capacity, which now stands at around 600,000 tonnes.

The start-up, announced on Wednesday, marks one of the company's largest single US investments in recent years and expands its footprint in a key polyurethane raw material.

Mining chemicals unit heads to SNF

Two days earlier, BASF signed an agreement to sell its global mining business to France's SNF. The transaction covers about 140 employees and the production site in Cork, Ireland. BASF expects the deal to close in 2027, subject to antitrust clearance and customary closing conditions.

Should investors sell immediately? Or is it worth buying BASF?

Meanwhile, efforts to acquire Evonik have stalled. According to Reuters, Evonik maintained its rejection of BASF's raised offer on Monday, even after a meeting between the two companies' leadership. No further meetings were planned following that report. BASF is the potential buyer in the approach, with Evonik the target.

Jefferies downgrades to Underperform

Jefferies cut BASF to "Underperform" from "Hold" on Wednesday while keeping its price target at 44 euros. Analyst Priyanka Patel cited margin risks, persistent oversupply and higher gas prices, along with a demand recovery that has yet to materialize.

For 2027, the brokerage projects EBITDA before special items of 7.4 billion euros — about 5% below consensus, according to its own figures. Jefferies lists the lingering overcapacity and the absent demand rebound among the reasons for its more negative stance on the stock.

Renewable power for European polyisobutene

Separately, BASF said on Tuesday that it will switch its European polyisobutene production for external customers entirely to electricity from renewable sources. The conversion of the eligible Oppanol B and Glissopal products is scheduled for completion from January 2027.

BASF Stock: New Analysis - 14 November

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