SINGAPORE: Cognis has sold its 50% stake in Cognis Oleochemicals, a joint venture with Sime Darby Plantation Sdn Bhd, to PTT Chemical International Private Ltd., a wholly owned subsidiary of PTT Chemical Public Company Limited. The deal was valued at approximately $152 million in cash.
Cognis Oleochemicals, which produces natural-based oleochemical products in production sites in Europe, North America and Asia, recorded sales of just over $1 billion, including approximately $190 million in deliveries to Cognis, in 2007.
The sale “reflects our strategy to consistently concentrate on the innovation-driven growth markets of wellness and sustainability. On the basis of our excellent experiences with Sime Darby and PTT Chemical over many years, we are convinced that the new joint venture offers synergies that will help Oleochemicals to further develop its businesses,” said Antonio Trius, chief executive officer of Cognis. The unit will continue to operate as Cognis Oleochemicals until a new name is established.