HOUSTON and LONDON, Oct. 1, 2015 /PRNewswire/ -- LyondellBasell (NYSE:LYB), one of the world's largest plastics, chemical and refining companies, today announced the acquisition of SJS Plastiblends Pvt. Ltd. (SJS), thereby advancing the Company's position in India's expanding automotive market. In August, LyondellBasell announced a definitive agreement to acquire SJS, a polypropylene (PP) compounds manufacturer located in Aurangabad, Maharashtra, India.
"This acquisition underscores our strategy of investing in growth projects that provide a competitive advantage in targeted markets and a strong return on assets," said Bhavesh (Bob) Patel, CEO and chairman of the management board of LyondellBasell.
India represents the fourth largest growth market for automobiles globally 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. Additionally, the World Bank has predicted India's GDP to grow at a rate of 8 percent by 2017.
The Aurangabad compounding plant has an annual production capacity of approximately 12,000 metric tons (26 million pounds). In addition to the already existing product lines, the facility will produce LyondellBasell's Hostacom glass fiber-reinforced, mineral filled and unfilled colored grades as well as Hifax high impact thermoplastic olefins. These products are used in the manufacture of automotive parts, home appliances and other applications.
LyondellBasell is the world's largest producer of PP compounds with an annual capacity of 1.2 million metric tons (2.4 billion pounds). LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009.
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 56 sites in 19 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.
Hostacom and Hifax are trademarks owned by LyondellBasell.
The LyondellBasell Aurangabad manufacturing facility is owned and operated by Basell Polyolefins India Pvt. Ltd., a wholly-owned subsidiary of LyondellBasell.
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, our ability to achieve expected cost savings and other synergies; our ability to successfully integrate and operate the acquired business described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the Company and its affiliates are located. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2014, which can be found at www.lyb.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov. LyondellBasell assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise.