PTT Chemical buys half of Cognis Oleochem

THAILAND'S PTT Chemical Public Co Ltd has bought a stake in Cognis Oleochemicals Sdn Bhd, making it the new partner for Sime Darby Plantation Sdn Bhd.

It bought a 50 per cent stake from Germany's Cognis for US$164 million (RM531.36 million), valuing Cognis Oleochemicals at US$328 million (RM1.06 billion).

The company will operate under the same name until a new name has been established, PTT Chemical and Sime Darby said in a statement released in Kuala Lumpur yesterday.

"The strategic partnership with Sime Darby will build a solid platform and provide unprecedented opportunities for Cognis Oleochemical's long-term growth and stability," said PTT Chemical president and chief executive Aditheb Bisalbutr.

He said the backing of strong partners with solid financial positions will ensure that Cognis Oleochemical is able to seize market opportunities and ensure long-term relationships with its customers.

It also wants to build its position as the world's largest oleochemical company with secure sources of raw material and diversified customer base.

Cognis Oleochemical produces a wide range of oleochemical products derived from natural renewable raw materials, such as palm oil, palm kernel oil, other vegetable oils, and tallow that are used in a vast range of applications.