HOUSTON and LONDON, Nov. 30,
2015 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of
the world's largest plastics, chemical and refining companies,
today announced that it has entered into a definitive agreement to
acquire the polypropylene (PP) compounding assets of Zylog
Plastalloys Pvt. Ltd. (Zylog) of India.
Upon completion of the acquisition, LyondellBasell will double
its automotive customer base in India and become the third largest producer of
PP compounds in the country with an annual capacity of 44,000
metric tons (97 million pounds).
Earlier this year, LyondellBasell acquired SJS Plastiblends Pvt.
Ltd. (SJS), a manufacturer of PP compounds located in Aurangabad,
Maharashtra, India. The Zylog
acquisition includes manufacturing sites in Sinnar, Maharashtra,
and in Chennai, Tamil Nadu.
"We are very optimistic about India's economic growth and rapidly expanding
automotive market," said Bhavesh (Bob)
Patel, CEO and chairman of the management board of
LyondellBasell. "The acquisition of SJS and Zylog are part of our
plan to strategically expand our footprint where it makes sense
from an economic and strategic perspective. With these investments,
LyondellBasell will be a leading producer of PP compounds in all
major automotive growth regions of the world," he added.
LyondellBasell is the world's largest producer of PP compounds
with an annual capacity of 1.2 million metric tons (2.6 billion
pounds). These compounds are used to manufacture automotive parts,
home appliances and other products. LyondellBasell has supplied the
Indian market through imports and tolling arrangements since
2009.
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 transaction is expected to close in early 2016. Until the
transaction is complete, Zylog will conduct business as usual and
continue to provide the same level of support, service and high
quality products to its customers.
About LyondellBasell:
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.
The purchaser is Basell Polyolefins India Pvt. Ltd., a
wholly-owned subsidiary of LyondellBasell.
About Zylog:
Zylog is a privately held corporation
established in India in 1984. The
company produces PP compounds, thermoplastic vulcanizates (TPVs)
and thermoplastic elastomers (TPEs) based on ethylene propylene
diene monomer (EPDM) rubber and styrene chemistry. LyondellBasell
is acquiring Zylog's PP compounding and warehousing assets, and the
trademarked brands Hipolyene, Hiflex and Entek. Zylog owns
two PP compounding facilities in India; one located in Sinnar, Maharashtra, and
one in Chennai, Tamil Nadu. Both
facilities house a world-class production setup with a variety of
extrusion lines, mixers, state-of-the-art quality assurance and lab
facilities, and research and development. Zylog Plastalloys
will continue to manufacture and market TPV (Neoplast) and TPE
(Neoflex).
Forward-Looking Statements
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
complete the acquisition described or the timing of such
transaction; our ability to achieve expected cost savings and other
synergies; our ability to obtain all necessary regulatory approvals
and to successfully 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.
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