(Bloomberg) ? Tyco International Ltd. plans to sell its plastics business, the world?s biggest maker of clothing hangers and trash bags, by the end of this year, Tyco chief executive Ed Breen said at a conference in Phoenix.

?This calendar year, we plan on having that done,? Breen said during a Web broadcast from Morgan Stanley?s ?CEOs Unplugged? conference yesterday.

Tyco is selling businesses that account for about ten percent of its $40.2 billion in annual revenue, including plastics with sales of about $1.7 billion.

The plastics unit was officially put up for sale on May 3. Breen said he wants a ?better handle on proceeds? of the sales before deciding how to spend the cash, listing an increase in a stock buyback and ?tuck-in? acquisitions as possible moves.

The sales ?as you go into 2006 will give us cash for redeployment for other use,? Breen said. He didn?t say who may be interested in buying the plastics business.

Shares of Tyco rose 29 cents to $29.16 in New York Stock Exchange composite trading. The shares have declined 18 percent this year.

Tyco, based in Bermuda and run out of West Windsor, New Jersey, is also the world?s biggest provider of fire and security systems and electronic connectors. Its fiscal year ends on September 30.

Tyco?s board is buying back about $1.5 billion in stock. That programme should last until the middle of fiscal 2006, giving the company time decide whether to increase share repurchases, Breen said.

Tyco plans to dispose of three electronics units, including ships used for undersea fibreoptic cable maintenance, next year, Breen said. They account for about $1 billion of the electronics unit?s $12 billion in annual sales, he said.