LyondellBasell Acquires Polypropylene Compounding Assets from Indian Firm

India: LyondellBasell Industries N.V., a leading US based manufacturer of plastics and polyolefins, has acquired the polypropylene (PP) assets of the India based producer of polyolefin compounds, that is, Zylog Plastalloys Pvt. Ltd. Under the terms of the purchase, LyondellBasell would acquire Zylog’s manufacturing facilities located at Chennai, Tamil Nadu and Sinnar Maharashtra, which would catapult the PP compounds production capacity of the company to 44,000 metric tons. This deal is the second PP compounds acquisition by LyondellBassell in India. The company had acquired SJS Plastiblends Pvt. Ltd, Maharashtra based PP compounds manufacturer, in October 2015. The PP compounds developed by the company would be used for manufacturing home appliances, automotive products, and other plastic compounds.

TechSci Research depicts that the acquisition of polypropylene compounds business of the Indian firm would strengthen LyondellBasell’s position in the polypropylene business. Furthermore, the technical expertise and global reach of LyondellBasell would result in augmented demand for masterbatch for production of high quality polypropylene compounds.

According to TechSci Research report, “Global Masterbatch Market By Type, By End User, By Region, Competition Forecast and Opportunities, 2011 - 2021”, global masterbatch market size is estimated to cross $ 16 billion in 2016. Growth in the market is anticipated on account of continuously increasing demand from major end use industries, such as packaging, food processing, building & construction, and automotive industries. Moreover, masterbatch consumption in packaging has increased significantly across the globe over the last five years due to rising popularity of small pack sizes, expanding sales and distribution network of plastic processors and plastic products, as well as growing use of flexible packaging market.