Goldman Sachs invests US$120 mln in Chinese cement maker

Zhejiang Hongshi Cement Co Ltd, the biggest cement maker in China¡¯s eastern province Zhejiang, said that Goldman Sachs Group Inc had paid US$120 million for its 25% stake, sources reported.

The two sides started the stake purchase talks in October, 2005, and the deal obtained the regulatory approval from the Chinese government this October, according to an official with Hongshi.

Set up in 2002, Hongshi expects to reach RMB 3 billion in sales this year. The company is planning to produce a total 30 to 35 million tons of cement from 2007 to 2012.

Recently Goldman Sachs and CDH Investment have jointly invested nearly US$ 100 million in Shandong Province-based Himin Solar Energy Group, China's top solar water heater maker.