30 November 2015
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.
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.
DETAILS
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.
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.
Zylog Plastalloys will continue to manufacture and market
TPV (Neoplast) and TPE (Neoflex).
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