LyondellBasell has 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% annually through 2021. Additionally, the World Bank has predicted India's GDP to grow at a rate of 8% by 2017.
The Aurangabad compounding plant has an annual production capacity of approximately 12 000 t (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 coloured 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 t (2.4 billion pounds). LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009.
Edited from press release by Angharad Lock
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