Ion Laser Technology, based in Salt Lake City, has signed a joint venture agreement with the Shanghai Institute of Laser Technology to build a manufacturing plant and produce lasers for the international market, officials said.

The new company will be called Shanghai Ion Laser Technology, said Ion president Kevin Ostler and chief executive Lynn Barney.Under the agreement, Ion will own 25.6 percent of the joint venture with an option to purchase up to 51 percent.

Ion said the joint venture will provide capital for future growth and low-cost technical skills and labor.

"This international partnership will give Ion a competitive price advantage in the world laser market and exposure as an international company," the Salt Lake firm said.

The Shanghai Institute of Laser Technology has been involved in laser research since the 1960s.

Under the agreement, Ion will receive an undisclosed payment for its technology and royalty payments from sales of the joint venture products.

Financial terms were not disclosed, but officials said total investment in the new company will be $2 million and a $400,000 line of credit with the Bank of China has been established.

Final approval of the venture from the Shanghai municipal government is expected within 30-45 days, Ion said.