Cognis Sells Interest In Oleochemicals Joint Venture To PTT Chemical

Germany-based specialty chemicals supplier Cognis GmbH has sold its 50-percent interest in Malaysia-based Cognis Oleochemicals to Singapore-based PTT Chemical International Pvt Ltd., a subsidiary of Thailand-based olefins and related products manufacturer PTT Chemical Public Co. Ltd. (PTT Chemical). The transaction, worth approximately 104 million euros, is expected to be completed by the end of September 2008.

Cognis Oleochemicals is a joint venture between Cognis and Malaysia-based Sime Darby Plantation Sdn. Bhd. for the production of natural-based oleochemical products. Cognis also is a partner with PTT Chemical and its Thai Oleochemicals subsidiary in two Thailand-based joint ventures including Thai Ethoxylate Ltd. and Thai Fatty Alcohols Co. Ltd., respectively.

“The sale of our stake in Cognis Oleochemicals reflects our strategy to consistently concentrate on the innovation-driven growth markets of wellness and sustainability,” said Antonio Trius, CEO, Cognis. “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. By selling our stake to well-known partners, we ensure a stable supply of our oleochemical basestocks is secured, as we are intending to continue sourcing products from the business under normal third-party commercial terms.”

August 20, 2008