China National Building Materials Group Corporation (CNBM) plans to become a shareholder of Russian cement producer Eurocement Group, the latter company said in a statement Monday.

The companies signed an agreement on cooperation in production of construction materials. “The Chinese corporation plans to enter the shareholder equity of Eurocement Group in order to implement the investment projects we have announced,” the Russian company said.

The companies agreed to upgrade Eurocement’s cement plants and construct new production lines for dry process production of Eurocement’s cement. The agreement also envisages establishment of clusters for production of construction materials in seven Russian federal districts at the basis of the local company. Business daily Kommersant reported that CNBM will investment US$5bn in the project.