LyondellBasell to acquire Indian plastics maker SJS Plastiblends
Plastics and chemicals maker LyondellBasell has entered into an agreement to buy India-based polypropylene compounds (PPC) maker SJS Plastiblends.
Terms of the financial agreement have not been disclosed, and the deal is expected to be finalized in late 2015.
According to a statement from Houston, Tex.-based LyondellBasell, the purchase will expand its existing footprint in India and expand 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. (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.”
SJS has approximately 60 employees and one manufacturing site with annual production capacity of approximately 12,000 metric tons of PPC, used in everything from car parts to home appliances.
Globally, India represents the fourth largest growth market for automobiles, with three million new vehicles produced each year. According to automotive market analyst IHS Inc., India’s automotive market is expected to continue growing by between 6 to 8 per cent annually through 2021.