LyondellBasell Industries has agreed to buy SJS Plastiblends Pvt. Ltd., a polypropylene compounder in Aurangabad, India. Terms were not disclosed.
Houston-based LyondellBasell said the acquisition will enhance its position in India's growing automotive market.
“This acquisition will expand our global [PP compound] manufacturing footprint and allow us to better compete in the long-term growth of India's automotive market,” said Bob Patel, LyondellBasell's chairman and CEO.
Globally, India represents the fourth largest growth market for automobiles, 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 percent annually through 2021.
LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009.
The deal is scheduled to close in late 2015.
LyondellBasell posted overall first-half profit of almost $2.5 billion, up almost 18 percent vs. the first half of 2014. The profit gain was realized even as sales fell 25 percent to $17.3 billion.
SJS has approximately 60 employees with annual production capacity of approximately 12,000 metric tons.
