Hard-pressed by fierce competition from hundreds of small producers in central China and the prosperous coastal regions, several large cement makers are investing heavily in the western region in anticipation of strong demand arising from the government-led reconstruction of the areas stricken by the earthquake on May 12, 2008.

Shenzhen-listed Tangshan Jidong Cement said it has invested in two new production facilities in Southwest China's Chongqing municipality, while Hubei-based Huaxin Cement Co said last week it plans to raise 4 billion yuan through a private placement of shares to fund its capacity expansion in Southwest China

The Anhui-based Conch Cement, China's largest cement maker, said in a filing to the Shanghai Stock Exchange that it is investing 1.2 billion yuan of the capital it raised to support its expansion in Southwest China.