Press Room
November 14, 2005
German Version
Cognis and Golden Hope agree to expand oleochemicals joint venture
Cognis Deutschland GmbH & Co. KG (“Cognis”) and Golden Hope Plantations Berhad (“Golden Hope”) have formally agreed to expand the scope of their existing joint venture with the transfer of Cognis’ global oleochemicals and plastics technology businesses. Following the signing of a memorandum of understanding earlier this year (July 13), and the successful conclusion of the subsequent contract negotiations, agreements respecting the transfer of the businesses to the joint venture and related aspects of the transaction were now signed.
With effect from January 1, 2006, Cognis’ global oleochemicals business, comprising fatty acids, glycerin, oilfield chemicals, azelaic acid and pelargonic acid, and plastics technology will be transferred to Cognis Oleochemicals (M) Sdn. Bhd., the existing 50:50 Malaysian joint venture between Cognis and Golden Hope. The implementation is subject to the approval of the relevant authorities and Malaysian Bank Negara and MITI (Malaysian Ministry of International Trade and Industry). The transaction is expected to be formally completed with closing by the end of January 2006.
The businesses being added to the joint venture employ around 750 people, mostly in Germany, the USA and Canada, and generate revenues of around €570 ($700) million (including sales to Cognis). Cognis and Golden Hope will continue to be equal shareholders in the company which is expected to remain consolidated in Cognis’ financial accounts.
After this expansion, Cognis Oleochemicals (M) Sdn. Bhd. will rank as one of the leading global oleochemical companies, having total revenues of around €690 ($850) million (including sales to Cognis) and around 1,100 employees.
About Cognis
Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 8,100 people, and it operates production sites and service centers in 30 countries. Cognis has dedicated its activities to a high level of sustainability and delivers natural source raw materials and ingredients for food, nutrition and healthcare markets, and the cosmetics, detergents and cleaners industries. Additionally, Cognis provides solutions for a number of other industries, such as coatings and inks, lubricants, textiles and plastics, as well as agriculture and mining.
Cognis is owned by private equity funds advised by Permira, Goldman Sachs Capital Partners, and SV Life Sciences. In 2004, Cognis recorded sales of €3.07 ($3.81) billion and an adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization and exceptional items) of €362 ($449) million.
About Golden Hope
Golden Hope has been in the plantation business for more than 160 years. It is one of Bursa Malaysia’s top 30 companies in terms of market capitalization with 26,000 employees. Golden Hope is also the first Malaysian public listed plantation group with downstream refineries and activities in oils and fats industries in Europe and South Africa. Golden Hope is a strong environmental advocate with global awards including the Forest Stewardship Council Certification (FSC), ISO 14001, ISO 9000, ISO 9001 and COC. It is the first plantation company in Malaysia to receive the Global 500 Award by the United Nations Environment Program (UNEP) for its “Zero Burning” practices. It has operations in seven countries (The Netherlands, Vietnam, China, Bangladesh, Indonesia, Germany and South Africa).
Since completing its rationalization exercise with Island & Peninsular Berhad in November 2004, Golden Hope focuses only on its core competency which is plantations and its downstream activities. It now owns 190,000 hectares of oil palm plantation land in Malaysia and Indonesia.
Contact
Wulf Klüppelholz, Corporate Communications Manager
Cognis Deutschland GmbH & Co. KG
Phone: +49-2173-4995-221
E-mail: wulf.klueppelholz@cognis.com
Internet: www.cognis.com