LyondellBasell expands India operations with acquisition of SJS Plastiblends
01 Oct 2015
LyondellBasell, one of the world's largest plastics, chemical and refiners, today announced the acquisition of SJS Plastiblends Pvt Ltd (SJS), in a bid expand into India's expanding automotive market.
LyondellBasell had, in August, signed a definitive agreement to acquire SJS, a polypropylene (PP) compounds manufacturer located in Aurangabad, Maharashtra.
"This acquisition underscores our strategy of investing in growth projects that provide a competitive advantage in targeted markets and a strong return on assets," said Bhavesh Patel, CEO and chairman of the management board of LyondellBasell.
India represents the fourth-largest growth market for automobiles globally with 3 million new vehicles produced each year. According to IHS Inc, India's automotive market is expected to continue growing by 6 to 8 per cent annually through 2021.
Additionally, the World Bank has predicted India's GDP to grow at a rate of 8 per cent by 2017.
The Aurangabad compounding plant has an annual production capacity of approximately 12,000 metric tonnes. In addition to the already existing product lines, the facility will produce LyondellBasell's Hostacom glass fibte-reinforced, mineral filled and unfilled coloured grades as well as Hifax high impact thermoplastic olefins. These products are used in the manufacture of automotive parts, home appliances and other applications.
LyondellBasell is the world's largest producer of PP compounds with an annual capacity of 1.2 million tonnes. LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009.
The LyondellBasell Aurangabad manufacturing facility is owned and operated by Basell Polyolefins India Pvt. Ltd., a wholly-owned subsidiary of LyondellBasell.
LyondellBasell is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. The company manufactures products at 56 sites in 19 countries.
