LyondellBasell completes 2nd polypropylene compounds acquisition in IndiaStaff writer ▼ | April 8, 2016
LyondellBasell completed the acquisition of the polypropylene (PP) compounding assets of Zylog Plastalloys in India.
Acquisition Zylog Plastalloys sold assets in India
LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009. In October 2015, LyondellBasell acquired SJS Plastiblends'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 44,000 metric tons (97 million pounds).
In addition to the already existing product lines offered at these sites, LyondellBasell will produce its Hostacom glass fiber-reinforced, mineral filled and unfilled colored grades as well as Hifax high impact thermoplastic olefins. These compounds are used to manufacture automotive parts, home appliances and other products.
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, 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. ■