Blackstone Group has agreed to buy 20 percent of chemical maker China National BlueStar (Group) Corp for up to $600 million, the private equity groups said on Monday, marking its first major investment in the fast-growing market.

Under the agreement, chemicals giant China National Chemical Corp is selling the stake to Blackstone and will hold 80 percent of BlueStar after the deal.

Blackstone, in which China's state overseas investment agency recently bought a $3 billion stake, will nominate two executives, its China chief Antony Leung and Ben Jenkins, to BlueStar's board, the statements said.

The U.S. firm, which has taken part in some of the world's largest leveraged buyouts, raised $4.13 billion in its initial public share offer in New York in June, the largest U.S. IPO since 2002.

BlueStar, with annual sales of 30 billion yuan ($4 billion), is the parent company of Shenyang Chemical Industry and Blue Star Cleaning Co, and holds a stake in Blue Star New Chemical Material.

($1=7.520 Yuan)