Volkswagen of Germany has settled its central laboratory in China in the Beijing chemical engineering research institute of China Petroleum and Chemical Corporation (Sinopec), said sources with the Sinopec Wednesday.

This is the top-level lab of Volkswagen in Asia and Pacific region and it marks another instance of cooperation between Volkswagen of Germany with Sinopec, China's biggest oil refiner.

As a bridge linking Volkswagen to Sinopec, the central lab, relying on the research institute, will give technological support to the strategy of Volkswagen in China by completing tests and authentication missions of the world auto manufacturing giant.

Through cooperation, Sinopec will improve its research and development of special chemical materials for auto use and to expand the market share of Sinopec's synthetic resin in the auto industry.

Both among the world top 500 enterprises, Sinopec and Volkswagen of Germany are also partners in the 2008 Olympic Games which is due to be held in Beijing. Except for cooperation in chemical materials, both have also had cooperation in fields such as gasoline, diesel oil and lubricating oil.