Akzo Nobel, the world's leading paint and chemical provider, has formed a new enterprise to create its largest China production base in the eastern Zhejiang Province, a group spokesman said on Friday.

The enterprise's main products, chelates and ethenamine, are expected to start being manufactured in 2009 and 2010, respectively, with an initial investment of 250 million euros (385 million U.S. dollars), said Robert Margevich, Akzo Nobel Functional Chemicals B.V., president.

He promised the Dutch-based company would use cutting-edge technologies and observe the strictest health, safety and environmental standards at the new plant.

Deputy Consul General Leo Linscheer of the Netherlands Consulate General in Shanghai said Akzo Nobel had set up more than 20 factories and workshops since it entered the Chinese market in the 1980s. The further economic cooperation would deepen the friendship between the two nations.

Akzo Nobel is a Fortune 500 company mainly engaged in the production of coatings, decorative paints and specialty chemicals. It employs around 68,000 people in more than 80 countries and regions worldwide.