LyondellBasell acquires Aurangabad-based SJS Plastiblends
10 August 2015
LyondellBasell, a world's largest plastics, chemical and refining companies is acquiring Aurangabad-based SJS Plastiblends in a strategic move to expand capabilities and footprint in India's growing automotive plastics market.
Houston, Texas-based LyondellBasell 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.
This strategic acquisition will expand LyondellBasell's existing footprint in India and further enhance the Company's position in India's growing automotive market, the company stated in a release.
LyondellBasell, however, did not reveal the value of the deal.
"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 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 per cent annually through 2021. LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009.
The acquisition agreement was signed on 7 August 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, the release said, adding that SJS will conduct business as usual and continue to provide the same level of support, service and high quality products to its customers.
Established in 1996, by a trio of chemical engineers and entrepreneurs, SJS is one of the leading suppliers of high-performance thermoplastic compounds, which are used as raw materials in a variety of market segments, ranging from automotive components to home improvement products, from film and packaging to irrigation equipment and garden supplies, and many more. The company's principal product lines consist of proprietary and custom-formulated thermoplastic compounds that improve the aesthetics and performance of plastics in specialised applications.
SJS has a team of around 50 people and has personal presence across India.
With major operations in the US and Europe, LyondellBasell is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. The company manufactures products at 55 sites in 18 countries.
LyondellBasell products and technologies are used to make items, including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.