LyondellBasell Advances India Growth Plan with Acquisition of SJS Plastiblends
OREANDA-NEWS. LyondellBasell (NYSE:LYB), one of the world's largest plastics, chemical and refining companies, today announced the acquisition of SJS Plastiblends Pvt. Ltd. (SJS), thereby advancing the Company's position in India's expanding automotive market. In August, LyondellBasell announced a definitive agreement to acquire SJS, a polypropylene (PP) compounds manufacturer located in Aurangabad, Maharashtra, India.
"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 (Bob) 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 percent annually through 2021. Additionally, the World Bank has predicted India's GDP to grow at a rate of 8 percent by 2017.
The Aurangabad compounding plant has an annual production capacity of approximately 12,000 metric tons (26 million pounds). In addition to the already existing product lines, the facility will produce LyondellBasell's Hostacom glass fiber-reinforced, mineral filled and unfilled colored 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 metric tons (2.4 billion pounds). LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009.
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 56 sites in 19 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 LyondellBasell Aurangabad manufacturing facility is owned and operated by Basell Polyolefins India Pvt. Ltd., a wholly-owned subsidiary of LyondellBasell.