LyondellBasell buys out another polypropylene compounds manufacturer in India
07 Apr 2016
LyondellBasell, one of the world's largest manufacturers of petrochemicals and refinery products today announced the completion of its previously announced acquisition of the polypropylene (PP) compounding assets of Zylog Plastalloys Pvt Ltd (Zylog) in India, its second acquisition in India.
The company said it had entered into a definitive agreement to acquire Zylog's PP compounding assets located in Aurangabad, Maharashtra, in November 2015.
LyondellBasell had, in October last year, announced the acquisition of SJS Plastiblends Pvt Ltd (SJS), in a bid expand into India's expanding automotive market (See: LyondellBasell expands India operations with acquisition of SJS Plastiblends). http://www.domain-b.com/companies/companies_l/lyondelllbasell/20151001_operations.html
With the acquisition of Zylog's manufacturing operations in Sinnar, Maharashtra, and Chennai, Tamil Nadu, LyondellBasell is now the third largest producer of PP compounds in India with an annual capacity of 44,000 metric tonnes.
In addition to the already existing product lines offered at these sites, LyondellBasell plans to produce its Hostacom glass fibre-reinforced, mineral filled and unfilled coloured grades as well as Hifax high impact thermoplastic olefins. These compounds are used to manufacture automotive parts, home appliances and other products.
"Our investments in India demonstrate LyondellBasell's continued focus on strategic growth projects that increase our competitive advantage and provide a strong return on assets," said Bhavesh (Bob) Patel, CEO and chairman of the management board of LyondellBasell. "We are proud of the high-quality products we provide to the automotive manufacturers, and our expansion in India underscores our commitment to meeting customer needs globally," he added.
LyondellBasell is the world's largest producer of PP compounds with an annual capacity of 1.3 million tonnes.
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.
In its latest Global Economic Prospect report, the World Bank projected that India's GDP will grow by 7.8 per cent in 2016 and 7.9 per cent annually in 2017 and 2018.
LyondellBasell has been supplying the Indian market through imports and tolling arrangements since 2009.