France's Lafarge Company will invest 150 million U.S. dollars in expanding its cement business in Southwest China from 2006 to 2010.

"Lafarge's business in China is expanding from the Southwest China to the whole nation and will be sustainable in the long-term," said Cyrille Ragoucy, CEO of Lafarge China, on Thursday.

The French building material giant has set up a new firm called Lafarge Shui On Cement Guizhou Business Unit, in Guiyang, capital of Guizhou Province.

The CEO attributed the company's interest in Southwest China to less severe industrial competition compared with East China, increasing investment from the Chinese government in recent years and vigorous infrastructure development which provides great potential for development of the cement industry.

"There are few high-tech cement enterprises in Southwest China, so Lafarge may take up more shares in the high-end market depending on its advanced technology," he added.

At present, the company has three cement factories in Guizhou with an annual production capacity of two million tons.

The Lafarge Shui On Cement Guizhou Business Unit is a subsidiary of Lafarge Shui On Cement, the joint venture of Lafarge Group and Hong Kong Shui On Construction And Materials Limited (SOCAM).

Source: Xinhua