Petroliam Nasional Bhd (Petronas), Malaysia's state oil firm, and Italian oil company Eni's chemical unit said they have inked a joint venture agreement to make synthetic rubber in the Southeast Asian nation.

Petronas, Malaysia's only Fortune 500 firm, will hold 60% stake of the proposed company with Eni's Versalis owning the remainder, according to a statement from both companies late on Thursday. The joint venture will produce and market synthetic rubber from four separate elastomer plants that it plans to build within Petronas' Refinery and Petrochemical Integrated Development site in the southern state of Johor. Financial details of the transaction were not disclosed.