A representative from Shanghai Hengcheng Group said his company planed to invest USD500m in Sakhalin Oblast, according to Russian Information Agency.

The representative expressed Hengcheng Group¡¯s plan included projects such as building of dwelling houses and a cement works with annual capacity of 400,000t in South-Sakhalinsk and participation in coal exploitation in Sakhalin.

The total investment of the group in Sakhalin Project would exceed USD100m, even up to USD500m.

Hengcheng Group and Sakhalin government entered into a cooperation intention on building of a cement works with USD15m in June, 2007, which was not carried out due to the earthquake of Sakhalin and the change of the governor.

The group has expected to continue the project and enlarge cooperation currently.