LyondellBasell has  completed the previously-announced acquisition of the polypropylene (PP) compounding assets of Zylog Plastalloys Pvt. Ltd. (Zylog) in India, officials announced on Thursday. 

The company entered into a definitive agreement to acquire Zylog's PP compounding assets in November 2015.  

LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009. In October 2015, LyondellBasell acquired SJS Plastiblends Pvt. Ltd.'s PP compounding business which is located in Aurangabad, Maharashtra. 

With the acquisition of Zylog's manufacturing operations in Sinnar, Maharashtra, and Chennai, Tamil Nadu, LyondellBasell is now the third largest producer of PP compounds in India with an annual capacity of 44,000 metric tons (97 million lb). 

In addition to the already existing product lines offered at these sites, LyondellBasell says it will produce its Hostacom glass fiber-reinforced, mineral filled and unfilled colored grades as well as Hifax high impact thermoplastic olefins. These compounds are used to manufacture automotive parts, home appliances and other products.

"Our investments in India demonstrate LyondellBasell's continued focus on strategic growth projects that increase our competitive advantage and provide a strong return on assets," said Bhavesh (Bob) Patel, CEO and chairman of the management board of LyondellBasell. "We are proud of the high-quality products we provide to the automotive manufacturers, and our expansion in India underscores our commitment to meeting customer needs globally," he added.

LyondellBasell is the world's largest producer of PP compounds with an annual capacity of 1.3 million metric tons (2.8 billion lb).

India represents the fourth largest growth market for automobiles globally with 3 million new vehicles produced each year. According to IHS, India's automotive market is expected to continue growing by 6% to 8% annually through 2021. In its latest Global Economic Prospect report, the World Bank projected thatIndia's GDP will grow by 7.8% in 2016 and 7.9% annually in 2017 and 2018.