China National Building Material Co Ltd said on Friday it would set up a joint venture firm with registered capital of CNY1bn (US$146.2m) to develop the cement business in northern China.

The locally listed cement and building materials producer said it would invest CNY450m for a 45 per cent stake of North Cement Co Ltd, a platform for developing and making acquisitions of cement businesses in Liaoning, Jilin, Heilongjiang and Inner Mongolia in China.

The company said it would fund the deal by internal resources. Chinese partners Liaoyuan Jingang Cement Co Ltd will hold another 45 per cent stake of the venture, and Hony Capital Management (Tianjin) will own 10 per cent.