Malaysian firm buys Cremer’s oleochemicals business in Germany

Malaysian firm buys Cremer’s oleochemicals business in Germany

11:01 AM, 11th September 2015
Malaysian firm buys Cremer’s oleochemicals business in Germany

KUALA LUMPUR, MALAYSIA: IOI Corporation Bhd said it is buying Cremer Oleo GmbH & Co KG’s oleochemicals business in Germany for €89.4 million ($100.1 million) as it expands its value chain. The plantation heavyweight said the oleochemical business’ production facilities were in Witten and Zur Hafenspitze.

“The production plant in Witten offers a broad array of mostly branded oleochemical specialty products for the pharmaceutical, cosmetic, food and performance chemicals markets worldwide. The Wittenberge plant provides high performance capacities for esterification with multi-step short-path distillation, distillation and fractionation of fatty acids and production of medium-chain triglycerides,” IOI Corp said.

Together the plants offered a processing capacity of approximately 39,200 tonne per annum. The net book value of the assets (net of liabilities) for the financial year ended 31 Dec, 2014 was €90.3 million, it said.

IOI Corp said currently its oleochemicals division was one of the leading oleochemical producers in the world.

“The proposed acquisition represents a timely and synergistic opportunity for the group to move further up the value chain with an investment in more specialised downstream oleochemical manufacturing business which has two production plants. The proposed acquisition will enable the group’s oleochemicals division to expand into a new product range to serve the higher margin but difficult to penetrate pharmaceutical, cosmetic, food and performance chemicals markets worldwide,” the company said.

It will also establish new production sites in the centre of Europe, taking advantage of close proximity to key markets in western Europe and emerging ones in eastern Europe. In addition, this also mitigates the increased import tariff on Malaysian oleochemical into EU post generalised scheme of preferences (GSP) withdrawal in 2014. 

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