LyondellBasell completes acquisition of Pune-based Zylog

NEW DELHI: LyondellBasell, the world's biggest maker of polypropylene plastic, today announced completion of acquisition of Pune-based Zylog Plastalloys.

LyondellBasell in November last year entered into a definite agreement to acquire polypropylene (PP) compounding assets of Zylog for an undisclosed sum.

In a statement, the company said the transaction has been completed.

LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009. In October 2015, it acquired SJS Plastiblends' PP compounding business located in Aurangabad, Maharashtra.

"With the acquisition of Zylog's manufacturing operations in Sinnar, Maharashtra, and Chennai, Tamil Nadu, LyondellBasell is now the third largest producer of PP compounds in India with an annual capacity of 44,000 tons," the statement said.

In addition to the already existing product lines offered at these sites, LyondellBasell will produce its Hostacom glass fiber-reinforced, mineral filled and unfilled colored grades as well as Hifax high impact thermoplastic olefins.

These compounds are used to manufacture automotive parts, home appliances and other products.

"Our investments in India demonstrate LyondellBasell's continued focus on strategic growth projects that increase our competitive advantage and provide a strong return on assets," said Bhavesh Patel, CEO and chairman of the management board of LyondellBasell.

The company, he said, is proud of the high-quality products it provides to the automotive manufacturers, and expansion in India underscores its commitment to meeting customer needs globally.

LyondellBasell is the world's largest producer of PP compounds with an annual capacity of 1.3 million tons.

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 per cent annually through 2021.

In its latest Global Economic Prospect report, the World Bank projected that India's GDP will grow by 7.8 per cent in 2016 and 7.9 per cent annually in 2017 and 2018.