State oil company Petronas today said it has sealed a deal with Chinese automaker Nanjing Automobile Corporation and Brilliant Culture Group Ltd to jointly manufacture car engines.

"The project is scheduled to take off in December 2006 with production expected to commence in 2009 with an annual production capacity of 100,000 units," Petronas said in a statement.

Petronas said it will be the technology provider to the project and will provide support through its research and development centre in Malaysia. It did not state the value of the contract.

Nanjing Automobile is a state-owned corporation and one of the largest automotive industrial enterprises in China while Brilliant Culture is a consulting company.

Petronas said the two companies may establish an engine research and development laboratory in China.