LyondellBasell (NYSE: LYB), one of the world’s largest plastics, chemical and refining companies, today 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. 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.
LyondellBasell (NYSE: LYB) is one of the world’s largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyb.com) manufactures products at 55 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.
SJS was established in 1996 to create products that improve the performance and aesthetics of plastics in automotive supply. SJS has approximately 60 employees and one manufacturing site with annual production capacity of approximately 12,000 metric tons of polypropylene compounds (PPC). These compounds are used in the production of thermoplastic materials for the automotive, home appliances and other markets. Singhi Advisors were financial advisors to SJS on this transaction.