Malaysia's Golden Hope Overseas Capital (GHOC) has signed a joint-venture agreement with two Chinese companies to establish Guangzhou Keylink Chemical Co. Ltd. in southern China, the company said Monday.

GHOC, an investment subsidiary wholly owned by Golden Hope Plantations Berhad, signed the agreement with Cognis Oleochemicals (Hong Kong) Ltd. and Lonkey Industrial Co. Ltd, the company said in a statement released here.

The new company based in Guangdong province will manufacture, distribute and sell methyl ester sulphonates (MES), an oleochemical derivative used in the production of detergent.

The collaboration will further strengthen Golden Hope's biodiesel business by capitalizing on the potential of MES as a replacement for linear alkybenzene sulphonate in the detergent industry, said GHOC.

Under the agreement, Lonkey will hold 49 percent of equity in the joint venture company with 36 percent under Golden Hope and the remaining 15 percent under Cognis.

Golden Hope said, Guangzhou Keylink will be responsible for building, developing and operating a plant to be built in Guangzhou to manufacture MES.  

The joint venture company will also be responsible for distributing and selling the products in China and other parts of the world, GHOC added.

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