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Kodak signed an agreement on Friday with Shanghai Mobile to form a key strategic partnership with the aim of increasing its share in China's mobile imaging market.

This is Kodak's second attempt, after its co-operation with Nokia last year, in printing photos shot with camera handsets.

"Mobile imaging is a rapidly growing global business worth us spending much efforts," said Henri Petit, senior vice-president of Eastman Kodak Company.

"The partnership will put both together to drive further innovation to the mobile business in China that holds the world's most mobile phone users," Petit said.

According to the agreement, consumers can get printed photos shot by camera handsets within two minutes through Kodak's nationwide digital express network.

Zheng Jie, chairman of Shanghai Mobile Communications Co Ltd, said the market has potential to go even further as more mobile functions are developed.

Insiders say video and still camera handsets will gradually take more market share in the digital imaging field.

The two partners, each being a giant in its own sector, are showing strong interest in China's market that has about 12 million camera handset users.

Shanghai Mobile now has 1 million camera handset users with half using video camera mobile phones, said Ma Yongting, general manager of the market operation of Shanghai Mobile.

"We are seeing a big increase this year based on last year's additional 60,000 users," said Ma.

And the number of camera handset users is likely to boom as 280 million Chinese families, who currently don't own a camera, will perhaps turn to the new handsets.

"The business is quite profitable, but it is hard to estimate how much we will earn in the first two to three years at the moment," Petit said.

Kodak has established its nationwide express network in China with 9,200 stores, including about 2,000 digital network outlets, forming a strong competition edge over its rivals.

At present, Kodak's digital imaging business in Shanghai, Beijing, Guangzhou and Shenzhen takes up 20-30 per cent of its total sales.

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