In a joint venture, Jardine Davies Inc., part of the Bermuda-registered Jardine Matheson Holdings Ltd. group, and Australian building materials company James Hardie Industries Ltd., plan to set up a fibre cement plant in the Philippines.

The joint venture is subject to final approval by the boards of both companies and production is probably 18 months away, said James Hardie managing director Mr. Keith Barton.

Production will target the Philippines' domestic market as fibre cement boards are more suitable for building than plywood, given the country's tropical climate and diminishing supply of logs.

"After extensive research, we believe an opportunity exists to establish a fibre cement manufacturing plant in the Philippines, both to service the domestic market and provide enhanced export openings in Asia,'' he said.

James Hardie will seek to set up similar ventures elsewhere in Asia, said Mr.

Barton.

Jardine Davies manufactures, processes and distributes building materials and other products in the Philippines.

It is 72 percent owned by Jardine Pacific, a subsidiary of Jardine Matheson.