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China National Building Material plans $146m cement JV

(Agencies)
Updated: 2009-03-06 14:56

China National Building Material Co Ltd said on Friday it would set up a joint venture firm with registered capital of 1 billion yuan ($146 million) to develop the cement business in northern China.

The locally listed cement and building materials producer said it would invest 450 million yuan for a 45 percent 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 percent stake of the venture, and Hony Capital Management (Tianjin) will own 10 percent.

Shares of China National Building Material, which gave up 69 percent in 2008, have fallen more than 4 percent so far this year to HK$8.93 in mid-session on Friday.