China Knowledge reported that China National Building Material Co the country second-largest cement manufacturer has inked an agreement to spend CNY 5 billion to set up a joint venture, named Southwest Cement Co Ltd, with three domestic companies.

In a statement, Hong Kong listed China National Building Material said it will invest CNY 3 billion in the JV later this month and contribute the remaining CNY 2 billion in two years time.

The JV in which China National Building Material will hold a 50% stake will have a registered capital of CNY 10 billion and will be engaged in the production and sales of cement, clinker, concrete and limestone mainly in Southwest China including Sichuan Province, Chongqing, Yunnan Province and Guizhou Province.

The three domestic companies, namely Shenzhen Jingda, Shanghai Zhentong and Beijing Huachen will have a 30% stake a 15% stake and a 5% stake in the JV respectively.