China Railway Erju Co has agreed to set up a US$40.54-million joint venture with a unit of US investment bank Lehman Brothers to invest in urban industrial projects.

The Chinese construction contractor will invest about 150 million yuan (US$21.28 million) and own 51 percent of the venture, based in Chengdu, southwestern Sichuan Province, it said in a statement filed with the Shanghai Stock Exchange.

ALAM Southwest Holdings, the Lehman unit, will own 49 percent. The venture will invest in urban industrial projects, infrastructure projects and industrial parks, among others.