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LyondellBasell to acquire PP business of Zylog Plastalloys

01 Dec '15

2 min read

One of the world's largest plastics, chemical and refining companies, LyondellBasell said it will acquire the polypropylene (PP) compounding assets of India based Zylog Plastalloys Pvt. Ltd.

“The Zylog acquisition includes manufacturing sites in Sinnar, Maharashtra, and in Chennai, Tamil Nadu and the transaction is expected to close in early 2016,” a press release from the company stated.

This transaction will help LyondellBasell double its automotive customer base in India and become the third largest producer of PP compounds in the country with an annual capacity of 44,000 metric tons.

Earlier this year, LyondellBasell acquired SJS Plastiblends Pvt. Ltd. (SJS), a manufacturer of PP compounds located in Aurangabad, Maharashtra, India.

“We are very optimistic about India's economic growth and rapidly expanding automotive market,” said Bhavesh Patel, chairman of the management board of LyondellBasell.

“The acquisition of SJS and Zylog are part of our plan to strategically expand our footprint where it makes sense from an economic and strategic perspective,” Patel added.

“With these investments, LyondellBasell will be a leading producer of PP compounds in all major automotive growth regions of the world,” he informed.

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, while the World Bank has predicted India's GDP to grow at a rate of 8 per cent by 2017.

LyondellBasell is the world's largest producer of PP compounds with an annual capacity of 1.2 million metric tons, which are used to manufacture automotive parts, home appliances and other products.

LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009.

Through this acquisition, LyondellBasell is also acquiring Zylog's PP compounding trademarked brands Hipolyene, Hiflex and Entek. (AR)

Fibre2Fashion News Desk – India