BackLyondellBasell to acquire SJS Plastiblends in India
The strategic acquisition is aimed at expanding the existing footprint in India
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Mumbai: New York-listed LyondellBasell Industries NV, a plastics, chemical and refining company, on Monday said it had entered into a definitive agreement to acquire SJS Plastiblends Pvt. Ltd. The company did not disclose the financial details of the deal.
SJS Plastibends, which is located in Aurangabad, manufactures polypropylene compounds. The strategic acquisition is aimed at expanding the existing footprint in India and to deepen its position in India’s growing automotive market, LyondellBasell said in a statement.
“This acquisition will expand our global PPC (Polypropylene compounds) manufacturing footprint and allow us to better compete in the long-term growth of India’s automotive market," said Bhavesh V. (Bob) Patel, chief executive officer and chairman of LyondellBasell.
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 6-8% annually through 2021.
LyondellBasell has been supplying in the Indian market through imports and tolling arrangements since 2009.
The deal was signed late last week and is expected to close by the end of the year. This acquisition will follow LyondellBasell’s strategic growth model by increasing its competitive position in attractive markets.
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