LyondellBasell in licensing pact with Hyundai unit for Indian market
11 Dec 2009
Bankrupt Dutch petrochemicals company LyondellBasell Industries today announced a production and marketing agreement with Hyundai Engineering Plastics (HEP) for the manufacture and supply of its products for the automotive and appliances sectors in India.
Last week LyondellBasell had announced that it would reduce polypropylene (PP) capacity by 110,000 tonnes through ther closure of one polypropylene line at its Wesseling plant in Germany by the end of 2009 (See: Bankrupt LyondellBasell to shut down 1,10,000-tonne polypropylene plant)
Under the agreement with Hyundai, HEP will manufacture LyondellBasell's latest-generation Hostacom and Hifax polypropylene compounds using LyondellBasell's proprietary technology and formulations at the HEP plant in Chennai. LyondellBasell will have exclusive marketing rights for these products.
"This agreement extends our global footprints and allows us to better serve our customers in major regions," Paul Yeates, senior vice president, advanced polyolefins at LyondellBasell said.
Hostacom and Hifax polypropylene compounds are used for value addition in automotive applications, such as instrument panels, interior trim and bumpers, as well as white goods such as washing machines and refrigerators.
"This cooperation enables us to supply our Indian automotive and appliance customers with locally manufactured, high-performance and high-quality compounds which will increase their competitiveness in the fast-growing Indian market," said Frank Noeltgen, vice president, Asia-Pacific Compounding Business at LyondellBasell.
The arrangement expands the existing global cooperation between the two companies that began in 2006, in which LyondellBasell produces, markets and sells HEP's `Supol' materials under licence from HEP in North America and Europe.
LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies and the global leader in polyolefins technology, production and marketing. The company has been in the news recently over a likely acquisition bid by Reliance Industries.