Sirmax completes expansion, starts work on new greenfield plant in India

Cittadella, Italy – Sirmax Group, a company specialising in the production of thermoplastics and thermoplastic elastomer (TPE) materials has announced progress with two major projects in India. 

As well as completing the renovation of its plant in Palwal, Sirmax has started land-preparation for the greenfield construction of a new Indian plant in Hosur near Bangalore, which will be operational from 2027.

The Cittadella, Padua-based group is already present in India with two plants – at Palwal and Valsad – controlled by the Autotech-Sirmax JV - said the 21 Feb statement, noting that the Hosur plant will be its third in India and 14th globally.

The new investments, at Palwal and Hosur, amount to approximately $10 million, driven by a robust recovery in domestic demand in India, where Sirmax is growing by 15% every year.

Redevelopment of the Palwal site, claimed Sirmax, has transformed the plant into a "technologically advanced" facility with four new extrusion lines, modern laboratories and new automated warehouses.

Production capacity has doubled to 30,000 tons/year to meet growing demand from: the automotive industry, especially for electric vehicles; household appliance industry; and electrical & electronics sectors.

“The Palwal expansion, said the group, is part of a broader growth strategy to position Sirmax as one of the leading producers of technical thermoplastics and polypropylene-based compounds in India.

This development is complemented by the greenfield construction of the group’s third plant in the country, located in Bangalore-Hosur in southern India, which is expected to be operational within two years.

“At present, India accounts for about 10% of Sirmax's entire business, but growth expectations are high – just think that the country has a population of 1.4 billion with an economy growing at 6,5% per year”.

For Achal Thakkar, managing director of Autotech-Sirmax India, completion of the Palwal plant expansion “enables us to meet the rapidly growing demand for high-performance compounds in India and international markets.”

Responding to ERJ’s enquiry about the impact of these developments on Sirmax’s elastomers business, Leonardo Forner, group marketing & sustainability coordinator, said Sirmax currently produces TPEs in the EU and exports where required for global customers.

Sirmax’s TPEs portfolio, he noted, includes: TPV, SEBS, SBS, TPO and ‘hybrid’ families, mainly for applications is the automotive, sports & leisure, home appliances and building & construction markets.

“The aim of the group's expansion with the third plant – under construction in Hosur and ready by 2026/2027 – is to extend all the product families produced in the EU to the Indian territory,” stated Forner.

For 2024, Sirmax posted sales of €420 million, up from €410 million in 2023, helped by a 10%+ increase in global production volumes, particularly in India, Brazil, and the US.

Europe, which accounts for 65% of group turnover, registered a “slight recovery, despite high inflation, an increase in the cost-of -living, and a decrease in demand for durable goods and in consumer [buyng] power.”

Sirmax linked the gains partly to its development of “high-performance green products that are now part of 90% of projects”, as well as a strategy of “internationalisation with short supply-chains to cover all areas of the world.”

Commenting on the financial results, Sirmax Group president and CEO Massimo Pavin said: “You need to establish a presence where demand is rising.

"Producing within a market for that market continues to be a winning strategy – especially in today’s climate, where economies are closing and the demand for local supply-chains is increasing.”