Kuala Lumpur - Malaysian palm oil giant Sime Darby and Thailand's PTT Chemical on Wednesday signed an agreement to jointly own a major producer of oleochemicals in a deal costing the Thai company 104 million euros (164 million dollars).

PTT Chemical, the largest chemicals producer in Thailand, agreed to buy a 50-per-cent stake from the German chemicals maker Cognis in the Malaysian firm Cognis Oleochemicals, one of the world's leading producers of oleochemicals, or chemicals derived from biological oils or fats.

The other 50 per cent of the venture is held by Sime Darby, the world's largest listed palm-oil producer. The two companies would now share ownership and control of Cognis Oleochemicals.

The joint venture agreement was expected to take effect by the end of September.

Cognis Oleochemicals operates its business through 11 subsidiaries in Europe, the United States and Asia and two joint venture companies in Malaysia and China with a total oleochemicals production capacity it put at 962,000 tons a year.

The Kuala Lumpur-based company produces oleochemical products derived from natural renewable raw materials such as palm oil, palm kernel oil and other vegetable oils that are used in the making of detergents, cosmetics, textiles and plastic additives.

The company recorded sales of about 3.52 billion euros in 2007, it said in a statement. (dpa)