A new cement manufacturing factory is to be set up in the Western Division.
The cement factory is one of the projects under the US$230m soft loan deal between Fiji and China.
Fiji’s ambassador to China, Sir James Ah Koy, said this was an exciting project that would benefit Fiji in several ways.
Business tycoon Hari Punja signed an agreement with representative of Qin Jiang Cement Company Ltd of China on Monday.
After the signing of the memorandum of understanding, Mr Punja said they hoped to move very fast with construction of the factory next year and begin production in 2010.
He said the financial part of the project was a 50:50 venture between the two companies.
"We are currently looking at a few sites. We should be able to make a decision within two to three weeks." The Chinese company will provide the technology and expertise while Hari Punja and Sons will manage and market the products.
Mr Punja said they would start off with producing cement before they move on to other products.
He said cement would be cheaper than other cement products currently on the market.