A company in northeast China has merged a chemical plant in southwest China's Guizhou province to set up a phosphate fertilizer enterprise with a total investment of 900 million yuan (108 million US dollars).

Zhou Furen, general manager of the Xiyang Fireproof Materials Company in the city of Haicheng in Liaoning Province, said they set up the phosphate fertilizer plant in Guizhou to respond to the government's call for developing the western regions.

"We'll seize the moment to develop our business when the government is carrying out strategies in the western areas," he said.

His company is China's biggest manufacturer of magnesium products and top tax payer in Liaoning province.

He said the phosphate fertilizer plant will be completed and put into operation next year. By then it will be capable of producing one million-ton compound fertilizers and earn 1.7 billion yuan per year.

Guizhou is known for its abundant resources of phosphor and electricity, but inadequate capital and poor transportation and telecommunications have hindered economic development in the province.

The western areas including Guizhou are expecting an influx of government funds and investments from both home and abroad after the government launched its western regions development campaign last year.

The vast western areas cover 56 percent of the country's territory and hold 50 percent of China's verified mineral deposits.(Xinhua)