Cognis Deutschland GmbH & Co. KG and Golden Hope Plantations Berhad announced that the transfer of Cognis' global oleochemicals and plastics technology businesses to the existing 50:50 joint venture between the two companies, Cognis Oleochemicals (M) Sdn. Bhd., has now been completed.
Following the signing of a memorandum of understanding in July 2005, and the successful conclusion of the subsequent contract negotiations, agreements relating to the transfer of the businesses to the joint venture were signed in November 2005. Based on approvals obtained from the relevant authorities in Europe and Malaysia the transaction has now been formally concluded.
The businesses added to the joint venture (fatty acids, glycerin, oilfield chemicals, azelaic acid and pelargonic acid, and plastics technology) employ around 750 people, mostly in Germany, the USA and Canada, and generate annual revenues (including sales to Cognis) of around EUR570 ($700) million. Cognis and Golden Hope will continue to hold equal stakes in the expanded joint venture. The expansion of the joint venture makes Cognis Oleochemicals (M) Sdn. Bhd. one of the world's largest oleochemical companies, with total annual revenues (including sales to Cognis) of around EUR690 ($850) million and a workforce of around 1,100 employees.