Since 2009, Tom Yura has served as senior vice president and general manager for BASF's Geismar, Louisiana, site, the largest of the corporation's North American manufacturing locations. In this role, he oversees the daily operation of 26 plants that manufacture many different products, including urethanes, chemical intermediates and surfactants.
Today, Yura leads the company's Geismar chemical complex as it invests in the latest project to expand its methylene diphenyl diisocyanate (MDI) capacity. BASF plans to double the production of MDI from 300,000 metric tons to almost 600,000 metric tons. MDI is used by customers to produce polyurethane foams and related materials for construction, insulation, automotive and packaging goods.
The complete expansion would take place over a period of several years in phases. In the first phase, BASF will make an initial investment of over $150 million in the construction of an MDI synthesis unit, with further production units planned for later phases. Construction started in the second quarter of 2018.
Through the investment, BASF will create 15 new direct jobs with an average annual salary of more than $86,600, plus benefits. Louisiana Economic Development (LED) estimates the expansion will result in an additional 70 new indirect jobs, for a total of 85 new jobs in the Capital Region. BASF will retain 1,100 existing BASF jobs in Geismar, where company operations also support over 400 contractor jobs.
"Louisiana excels in chemical manufacturing because of our outstanding infrastructure, a great business climate and a manufacturing workforce that leads the U.S. in productivity," Louisiana Gov. John Bel Edwards said. "We're proud that BASF is choosing to reinvest in its Geismar complex, which is one of the biggest economic drivers in Louisiana and one of the leading sources of highly skilled manufacturing jobs. Ascension Parish and the Capital Region of Louisiana will be major beneficiaries of this important modernization project."
"This new plant further strengthens our position as a leading supplier of chemistry for sustainable solutions," said Yura, who also serves as general manager of the Geismar site. "This investment also demonstrates our strong commitment to our employees, our community and our presence in Louisiana."
In the past decade, BASF has invested more than $800 million in major capital projects in Ascension Parish. The MDI modernization project will generate 180 construction jobs at peak activity, with the company expecting to complete the project by the end of 2020.
"The investment that BASF is making in their Ascension Parish site is further proof that Ascension is a great place to do business," Ascension Parish President Kenny Matassa said. "In addition to the jobs they provide and the tax revenue they generate, they have given back to the community through support and sponsorships. BASF has always been a great corporate citizen."
LED engaged BASF in discussions about the potential project prior to the company's beginning engineering analysis in the fourth quarter of 2016. To secure the BASF project, the State of Louisiana offered a competitive incentive package that includes a $1.65 million Modernization Tax Credit, to be claimed in equal installments over five years. BASF also is expected to utilize Louisiana's Industrial Tax Exemption and Quality Jobs programs.
"AEDC [Ascension Economic Development Corp.] has been very fortunate to have a great relationship with BASF and we are proud of the economic impact BASF has on our community," said AEDC President and CEO Kate MacArthur. "Manufacturing jobs are the backbone of our parish, and we appreciate the continued investment BASF is willing to make in the Geismar facility and the quality employment opportunities that the investment creates."
"BASF has been a longstanding presence in the state and a longstanding partner in the Baton Rouge area," said Baton Rouge Area Chamber President and CEO Adam Knapp. "This expansion will eventually double their production of energy-efficient MDI, while providing new direct and indirect jobs for the region."
BASF's Geismar site is also celebrating its 60-year anniversary in 2018, and Yura expects continued growth for the site. "The existing infrastructure at the Geismar site, combined with competitive raw materials based on shale gas, makes the Geismar site ideally suited for investment," he said.
Setting 'high expectations' for safety
Beginning in 2014, BASF and the Geismar site implemented an Exposure Reduction Program (ERP) for employees and contractors to ensure they have the skills to positively impact personal safety, process safety and environmental compliance. Employees and supervisors receive coaching on how to adjust behaviors and reduce exposures to hazards. The program encourages employees to speak up and help determine a safer approach when they see a colleague demonstrating at-risk behavior.
"The largest focus of my job and all of industry, day in and day out, is safety," Yura stated. "Sharing best practices and rewarding companies and contractors that work using excellent safety standards allows us to set high expectations within our industry when it comes to safety."
At BASF, safety is a value. "We have a vision of zero injuries and zero spills," Yura added. "Through programs at the site since 2006, there has been a 70-percent reduction of employees getting hurt, a 75-percent reduction in spills and a 60-percent reduction in emissions to air and water. In 2017, BASF employees and contractors achieved a 0.22 Total Recordable Injury Rate -- the site's best rate in history. BASF was also named the Responsible Care® Company of the Year by the American Chemistry Council (ACC) in 2017."
This performance has been achieved at the same time the site population and production at Geismar have grown considerably. "BASF's responsibility is to provide the safest operations and products for our employees and customers while protecting our communities and the environment," explained Yura. "As a company, we never compromise on safety. BASF is dedicated to recognizing and controlling risks and exposures in all areas of our business. We are committed to Responsible Care because we value the health and safety of our employees, customers, contractors and communities, and protecting our environment."
As chair of the Louisiana Chemical Association's (LCA's) health and safety committee, Yura is dedicated to driving safety improvements across all LCA member companies. And as a board member of the Greater Baton Rouge Industry Alliance, he continuously supports the Contractor Safety Awards, which publicly recognize contractors who have achieved excellence in safety. "I also encourage development and implementation of individual safety programs specific to certain jobs, such as the NCCER hydroblasting certification, which teaches the most up-to-date techniques while improving safety," he added.
Creating chemistry in the community
BASF is committed to being a welcomed member and a great neighbor within the communities in which it operates. "We have had a long history and commitment to partnering with local organizations that seek to improve quality of life and strengthen the fabric of our society," Yura said. "Our employees live in the local communities, too. They raise their families here. Their children go to school here. So we continuously support the generous volunteerism of our employees and encourage them to take an active role in our community to make it an even better place to live and work."
Each year, BASF's Geismar site contributes more than $600,000 in charitable donations to a variety of nonprofit organizations supporting educational, health, environmental and cultural organizations and programs. Employees also volunteer thousands of hours in the community annually.
"BASF recently donated nearly $1 million in contributions, in-kind support and process plant equipment to River Parishes Community College's new Technical Campus -- all to support the training of future employees in our industry," Yura explained. "These examples of collaboration are essential to have a properly trained workforce."
BASF Geismar, La., Site
8404 River Road
Geismar, LA 70734
(225) 339-7606
www.basf.us
Employees: 1,100 employees, 400 contractors
Products: Ethylene oxide/glycols, toluene diisocyanate, methylene diphenylisocyanate, hydrochloric acid, polyether polyols, butanediol, gamma-butyrolactone, N-methyl pyrrolidone, tetrahydrofuran, 2-pyrrolidone, N-vinylpyrrolidone, polyvinylpyrrolidone, specialty amines, aniline, acetylene, alkylethanolamines, surfactants, polytetrahydrofuran and methylamines.
Size: 2,300 acres
