Chinese operator of petrol stations Sino Energy International Holdings Group Ltd has announced a provisional agreement to buy a 65 percent stake in a Mozambican cement works from Sino-Harbor Construction Group (Hong Kong) Co. Ltd.

Sino Energy International told the Hong Kong Stock Exchange last week that it had 120 days to do a due diligence study before deciding whether to confirm the purchase.

The company says the works is in the northern Mozambican city of Pemba, in Cabo Delgado province, and has the capacity to produce 400,000 tonnes of cement a year.

The company is optimistic about the cement business in Mozambique, Sino Energy International told the stock market.

Sino Energy has branched into manufacturing and sales of casual footwear, apparel and accessories in mainland China but says the deal could further diversify the group’s business and broaden its revenue base in the future, the statement adds.