LyondellBasell to buy polypropylene compounder SJS Plastiblends in India

LyondellBasell has entered into a definitive agreement to acquire  SJS Plastiblends, a polypropylene compounds (PPC) manufacturer based in Aurangabad, Maharashtra, India, officials said on Monday. 

This strategic acquisition will expand LyondellBasell's existing footprint in India and further enhance the company's position in India's growing automotive market, according to LyondellBasell officials.

"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 LyondellBasell's management board. 

"We are very proud of the strong, global reputation we have built by manufacturing high-quality products and providing excellent service to our customers," he added. "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, India's automotive market is expected to continue growing by 6% to 8% annually through 2021. LyondellBasell says it has supplied the Indian market through imports and tolling arrangements since 2009.

The acquisition agreement was signed on August 7,  and the transaction is expected to close in late 2015. Until the transaction is complete, SJS will conduct business as usual.

Financial terms of the agreement were not disclosed.