UPDATE 1-Thai PTTCH to buy into Malaysian oleochemicals firm

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BANGKOK, July 23 (Reuters) - Thai PTT Chemical PTTC.BK (PTTCH) said on Wednesday it had agreed to buy a 50 percent stake in a Malaysian oleochemicals firm from German chemicals maker Cognis [COGN.UL] for 104 million euros ($164 million).

PTT Chemical, the largest olefins maker in Thailand, said in a statement the deal was expected to be completed by September and would help develop its international presence through the joint venture's marketing channel.

The other 50 percent in the venture, Cognis Oleochemicals (COM), a producer and distributor of basic and specialty oleochemicals in Malaysia, is held by Sime Darby (SIME.KL), the world's largest listed palm oil producer.

"The partnership with Sime Darby will help strengthen the company's oleochemical feedstock position," PTT said.

The investment is part of its plan to diversify its investments, create added value in downstream products, and enhance its competitiveness while maintaining and stabilising revenue growth over the long run, the statement said.

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 puts at 962,000 tons a year.

The firm, one of the world's leading manufacturers of oleochemicals, posted a 17 percent increase in first-quarter sales to 175 million euros ($276 million) thanks to a price rise.

Oleochemicals are derived from natural oils or fats for use in detergents, laundry softeners and chemicals for paper.

On Tuesday, shares in PTT Chemical closed down 6 percent at 69.50 baht, while the main Thai index .SETI fell 0.75 percent. ($1=.6340 Euro) (1$=33.35 Baht) (Reporting by Arada Therdthammakun; Editing by Alan Raybould)