ARNHEM, 09/08/06 - Chemicals concern Akzo Nobel has formed a partnership with a Chinese counterpart, Feixiang Chemicals. The alliance will focus on the production of surfactants.

The Dutch company will have exclusive rights to the distribution of the majority of Feixiang's surfactants outside China. At the same time, the Chinese company will sell Akzo Nobel's products in China and will have access to the Dutch company's technology.

Surfactants are 'surface-active' substances used in agriculture, the oil, cleaning and asphalt industries and mining. They are also bought by companies making personal care products.

Feixiang produces 80,000 tonnes of chemical products annually, including surfactants. Akzo Nobel generated 2005 sales of 636 million dollars with its own surfactants.

"This agreement completely dovetails with our growth strategy for Asia and will clear the way to push through further in the fast-growing Chinese market," said Akzo Nobel executive Leif Darner. "We expect sales in Asia - and then especially in China - to grow by 30 to 40 percent," a spokesman added. The chemicals concern gives no figures for individual regions.

The partnership still has to be approved by the Chinese government. According to the Akzo Nobel spokesman, the joint venture can start work from 1 October.