China National Building Materials, a major Chinese cement producer, is to set up a cement joint venture with a registered capital of CNY10bn (US$1.6bn).

China National will take a 50 percent stake in the joint venture, with the rest split among three domestic companies, it said on Friday.

China National will contribute CNY3bn to the joint venture – Southwest Cement Co Ltd – later this month, and contribute the remaining CNY2bn in two years.

The venture should help the company expand in southwestern China through mergers and acquisitions, it said.
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