LyondellBasell completes second Polypropylene Compounds acquisition in India

LyondellBasell completes second Polypropylene Compounds acquisition in India

LyondellBasell, one of the world’s largest plastics, chemical and refining companies, today announced that it completed the previously announced acquisition of the polypropylene (PP) compounding assets of Zylog Plastalloys Pvt. Ltd. (Zylog) in India. The company entered into a definitive agreement to acquire Zylog’s PP compounding assets in November 2015

LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009. In October 2015, LyondellBasell acquired SJS Plastiblends Pvt. Ltd.’s PP compounding business, which is located in Aurangabad, Maharashtra. 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 44000 metric tons (97 million pounds). 

In addition to the already existing product lines offered at these sites, LyondellBasell will 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 metric tons (2.8 billion pounds).

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 percent annually through 2021. In its latest Global Economic Prospect report, the World Bank projected that India’s GDP will grow by 7.8 percent in 2016 and 7.9 percent annually in 2017 and 2018.

LyondellBasell is one of the world’s largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 57 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.

Hostacom and Hifax are trademarks owned by LyondellBasell.

The manufacturing facilities in India are owned and operated by Basell Polyolefins India Pvt. Ltd., a wholly-owned subsidiary of LyondellBasell.

www.lyb.com


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