Hongshi Group, the second-largest cement maker in Zhejiang, will sell a 25 per cent stake to Goldman Sachs Group or 600 million yuan.
Privately held Hongshi has an annual cement production capacity of 16.5 million tonnes and total assets of 3.6 billion yuan, according to the company.
However, it did not disclose full financial details or earnings figures.
Hongshi Group said talks began in 2005, when the mainland cement industry was suffering under austerity measures imposed by the central government which was seeking to curb overcapacity in certain industries by restricting their access to credit.
Earlier this year the State-owned Assets Supervision and Administration Commission said some important industries needed to be consolidated, and cement firms should be consolidated into 12 'pillar cement companies'.
Large cement companies were encouraged to acquire smaller producers in order to enhance the industry's efficiency.
In the past few months several large cement companies have snapped up small and medium-sized players, hoping to enlarge production capacity and improve economies of scale.