MOSCOW (MRC) -- LyondellBasell, one of the world's largest plastics, chemical and refining companies, has announced that it has entered into a definitive agreement for the acquisition of SJS Plastiblends Pvt. Ltd. (SJS), a polypropylene compounds (PPC) manufacturer, located in Aurangabad, Maharashtra, India, as pe the company's press release.
This strategic acquisition will expand LyondellBasell's existing footprint in India and further enhance the company's 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. (Bob) 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.
As MRC wrote previously, in November 2014, LyondellBasell Industries said "tight" markets for its products may stall the narrower margins that it expects will ultimately come from lower oil prices.
LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
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