The China National Building Material Co (CNBM), the country's second-largest cement producer, has accelerated its bid for the number one slot in the market through a series of aggressive mergers and acquisitions.

The latest move has seen CNBM, a Hong Kong-listed State-owned enterprise, teaming up with the Liaoyuan Jingang Cement (Group) Co and Hony Capital. The three companies have jointly launched the North Cement Company, a joint venture with a registered capital of 1 billion yuan. Both CNBM and the Liaoyuan Jiangang Cement (Group) own 45 percent of the new company, with the remaining 10 percent controlled by Hony Capital. Production capacity of the joint venture is expected to hit 50 million tons annually over the next three years.

Spurred on by the stimulus policies now being initiated across northwest and northeast China, the partners in the new venture are keen to capitalize on the strong investment demand for fixed assets and infrastructure in the country's northern region.