(Yicai) June 5 -- Transfar Group has signed a deal to deepen its partnership with Japanese conglomerate Daikin Industries, with a focus on non-fluorinated water repellents, the leading Chinese chemicals producer said.

Transfar will work with Daikin to develop their business in China, while also exploring overseas markets such as Southeast Asia, Xu Xun, vice president of the Hangzhou-based company said at the signing ceremony on June 3. They will focus on the textile sector while branching into broader areas of application, he added.

Osaka-based Daikin can offer advantages in technology and branding, said Hideo Kaneko, chairman of Daikin Fluorochemicals China.

The two companies have worked together for 30 years, mainly in distribution, but now plan to jointly carry out research, development, production, and sales.

As global environmental regulations become more stringent, the hazards of fluorinated water repellents -- known as “forever chemicals” as they do not degrade in the environment -- have drawn heightened scrutiny, accelerating the development and use of fluorine-free alternatives.

They are widely used in clothes, as well as food packaging and cookware, but industry experts point out that non-fluorinated water repellents are being used increasingly in sportswear, footwear materials, and outdoor products such as tents. They also have to meet high performance demands, such as water and oil resistance as well as easy stain removal.

The market potential for fluorine-free water repellents is broad, with potential applications in textiles, paper, and electronics, according to Zhou Jiahai, chairman of Shenzhen-listed Transfar Zhilian. The subsidiary’s shipments of fluorine-free water repellents surged 120 percent last year, he said.

There are challenges in improving oil resistance performance, but Transfar and Daikin said they are continuously advancing their R&D efforts in this area, as well as trying to address technical issues related to the feel of the fabric.

Founded in 1986, Transfar works in chemicals, chemical engineering, logistics, agriculture, technology, and other sectors. It has two listed subsidiaries, the other being Wynca Group. Transfar Zhilian’s net profit tumbled 74 percent to CNY150 million (USD20.88 million) last year after revenue slid 21 percent to CNY26.7 billion (USD3.7 billion)

Editor: Tom Litting