A contract was signed on November 12 in Chendu to start the construction of a LAFARGE cement plant in the city of Dujiangyan in southwest China's Sichuan Province.

The contract is for 1.3 billion yuan (157 million US dollars) to build the largest cement plant in western China.

The project was funded by the French LAFARGE Group, the world's largest provider of construction materials, and the Dujiangyan General Construction Company.

The plant will be built in the Dujiangyan, and is expected to be completed in September 2001, with production beginning that November.

When completed, the annual capacity of the plant will reach 1.30 million tons of Portland cement, bringing 420 million yuan (50 million US dollars) of sales and 194 million yuan (23 million US dollars) of profits.

Sources said that after completion, the dust caused by the plant will be strictly controlled and kept at safe levels to protect the environment.