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Zylog enters into Definitive Agreement with LyondellBasell to sell PP Compounding Business.

Zylog enters into Definitive Agreement with LyondellBasell to sell PP Compounding Business.

 

Pune, India; November 30, 2015

Zylog, one of India’s leading polyolefin compounding company has entered into a definitive agreement to sell its polypropylene (PP) compounding assets to LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies.

 “With this acquisition, LyondellBasell would have the opportunity to substantially expand its footprint in Indian automotive sector, getting immediate access to all major automotive OEs and leading Tier I customers, that Zylog has been servicing over the years”, says Aschak Damani, Executive Director, Zylog Plastalloys.

The acquisition includes manufacturing sites in Sinnar, Maharashtra, and in Chennai, Tamil Nadu and the trademarked brands of Hipolyene, Hiflex & Entek. 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’s advisors included PricewaterhouseCoopers (PwC) India as financial advisors, whereas AZB & Partners advised on legal matters.

Zylog Plastalloys will continue to operate its elastomer business that includes brands Neoplast (TPV) and Neoflex (TPE). Current promoters have strategic plans in place to expand this elastomer business with new technology and product portfolio to cover wider applications in medical, healthcare, poultry, irrigation, wire & cable, building & construction, appliances and of course automotive. Besides, Zylog Composites, a new startup from the same group, is pushing new frontiers in thermoformed parts and components based on flexible and rigid TPOs, replacing rubber, PVC, ABS, HIPS focused to automotive applications.

 
Zylog participates at the K Fair 2013 at Dusseldorf Germany

Zylog had an eventful K 2013 show, where it displayed it’s range of Hipolyene, Hiflex, Neoplast and Neoflex range of compounds, suited for a wide variety of applications across markets that included Automotive, Medical & Healthcare, Wire & Cable, Building Construction, Coated Fabrics and Sheets. As part of it’s “Go Global” strategy, Zylog has been expanding its global footprint over the last 2 years to include ASEAN, Middle East, Eastern Europe, Russia, North America, Brazil and Mexico.

 
Zylog develops a range of TPO and TPE-V materials for Automotive Sealing applications

EPDM and PVC are dominant materials in the body sealing application for automotive, primarily on account excellent compression set and cost respectively. PVC, however has several downsides with respect to low temperature flexibility, long term ageing properties as well as ESCR. Zylog has developed a range of TPE-V & TPO materials that are well suited for static sealing applications, providing better performance with regards to low temperature ductility, lighter weight due to lower density, olefinic based – hence free from halogen, easy to recycle, excellent weather ability, UV and Ozone resistance, service temperature range from +125 to – 60 oC.

 
Zylog develops TPO range for sheet extrusion & thermoforming application

Zylog has developed a speciality range of TPO compounds for sheet extrusion – helping enhance the range of thermoformed application in the automotive industry. These compounds are engineered to meet the specific requirement for use in Interior and exterior parts of a passenger car – from interior cabin trims to mud guards and boot liners. These compounds offer excellent heat and weather resistance, mechanical performance – balancing toughness and aesthetics with excellent melt strength for sheet extrusion as well as formability. These compounds are also suitable for Industrial and Agriculture vehicles.

 
Zylog develops speciality range of TPEs for Medical Applications

Furthering productivity in the healthcare industry, Zylog has introduced a range of TPE compounds complying to Heamocompatibility, Cytotoxicity and other health regulatory requirements – well suited for applications including Syringe Gaskets, Stoppers, Ergonomics etc. These compounds allow design freedom; system optimisation – bondable with several substrates; and reduction in production costs.