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.