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LyondellBasell buys Indian PP compounding assets

30 Nov 2015 11:31 GMT
LyondellBasell buys Indian PP compounding assets

London, 30 November (Argus) — Netherlands-based chemical group LyondellBasell has entered a definitive agreement to acquire the polypropylene (PP) compounding assets of Indian plastic manufacturer Zylog Plastalloys, doubling its automotive customer base in India.

The acquisition adds to LyondellBasell's purchase of another Indian PP compounder — SJS Plastiblends — in August, and will make the company India's third largest PP compound manufacturer with annual production capacity of 44,000 t/yr.

LyondellBasell produces 1.2mn t/yr of PP compounds globally. These have a number of applications, including the automotive industry which is a focus for the company.

Chief executive Bhavesh Patel said LyondellBasell is very optimistic about India's rapidly expanding automotive market, and said the acquisitions will make LyondellBasell a leading PP compound manufacturer in all the world's major automotive growth regions.

The transaction is expected to be completed in early 2016. Following completion, Zylog will continue to manufacture and market thermoplastic vulcanizates (TPVs) and thermoplastic elastomers (TPEs).

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