Ten Cate, which specialises in protective and lightweight material production, already works with Xaar on inkjet technology for the textile market.
Xaar, which bought into Xennia in September 2005, will enjoy a collaborative relationship with both companies on the EU-subsidised Digitex project.
This project covers the development of digital textile finishing to enable functional characteristics, such as fire resistance and self-cleaning properties, to be applied to fabrics.
Digitex, which was announced in 2006, has a total project budget of £9.47m (€12.7m), £5.1m of which is EU-subsidised.
Xaar chief executive Ian Dinwoodie said Xennia "had strengthened its position for the future through what is an innovative and collaborative agreement with Ten Cate".
"We already work with Ten Cate under an EU Framework project and we look forward to working more closely with them in the future and to establishing inkjet as a key production process for the textile and specialist materials market."
Xaar bolsters alliance with textiles firm for Digitex project
Xaar, the Cambridge-based inkjet technology firm, has strengthened its partnership with Dutch textiles group Ten Cate, which has bought a 75% stake of inkjet technology group Xennia, in which Xaar holds a minority interest.
