Global petrochemical major LyondellBasell Industries, for which Reliance Industries has made a preliminary bid, has entered into an agreement with Hyundai Engineering Plastics for manufacturing certain products in India.
The company has signed a tolling and marketing agreement with Hyundai Engineering Plastics for manufacturing two latest-generation compounds using LyondellBasell's proprietary technology and formulations.
The products would be manufactured at the HEP plant in Chennai, a LyondellBasell statement said. LyondellBasell would have exclusive marketing rights for these products, it added.
"This cooperation enables us to supply our Indian automotive and appliance customers with locally manufactured, high-performance and high-quality compounds which will increase their competitiveness in fast-growing Indian market," LyondellBasell vice president (Asia-Pacific compounding business) Frank Noeltgen said.
The two compounds, Hostacom and Hifax polypropylene, are used to add value in automotive applications. The arrangement expands existing cooperation between the two firms that began in 2006 and under which LyondellBasell produces, markets and sells HEP's Supol materials in North America and Europe.
Late last month, LyondellBasell and Reliance Industries disclosed a "preliminary non-binding offer" by the Indian firm for a controlling stake in the chemical maker. Going by industry sources, RIL's bid could be more than $12 billion.
