China Railway Erju, Lehman Brothers' Unit in US$41 mln JV

China Railway Erju Co. Ltd<600528>, the first listed enterprise among China's railway construction firms, announced that it has agreed to set up a joint venture with ALAM Southwest Holdings, a unit under U.S. investment bank Lehman Brothers, said the Chinese railway contractor in a statement to Shanghai Stock Exchange yesterday.

The joint venture, located in Southwest China's Chengdu, has registered capital of US$40.54 million. ALAM Southwest will hold 49% stake in the venture by cash injection and the Chinese counterpart will own the remaining stake in it. ALAM will also assign a CFO to the new venture.

The venture, still subject to the regulatory approval, will make investments in infrastructure projects, industrial parks and other urban industrial projects.

China Railway Erju was set up with registered capital of RMB 912 million in Chengdu, capital city of Southwest China's Sichuan province.