LyondellBasell, one of the world’s largest plastics, chemical and refining companies, has entered into a definitive agreement for the acquisition of SJS Plastiblends (SJS), a polypropylene compounds (PPC) manufacturer, located in Aurangabad, Maharashtra. This strategic acquisition will expand LyondellBasell’s existing footprint in India and further enhance its position in India’s growing automotive market.
“This acquisition will expand our global PPC manufacturing footprint and allow us to better compete in the long-term growth of India’s automotive market,” said Bhavesh V Patel, CEO and chairman of the management board of LyondellBasell. “We are very proud of the strong, global reputation we have built by manufacturing high-quality products and providing excellent service to our customers. We look forward to continuing this tradition in India through this expansion.”
Globally, India represents the fourth largest growth market for automobiles, with three million new vehicles produced each year. According to IHS Inc, India’s automotive market is expected to continue growing by six to eight percent annually through 2021. LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009.
The acquisition agreement was signed on August 7, 2015, and the transaction is expected to close in late 2015. This acquisition will follow the company’s strategic growth model by enhancing its competitive position in attractive markets. Until the transaction is complete, SJS will conduct business as usual and continue to provide the same level of support, service and high quality products to its customers.