Taiwan Cement Group recently announced it has set aside CNY1.6bn to acquire Kehua, the largest cement producer in Chongqing of Sichuan province, China. Thanks to the acquisition, the group’s annual production capacity in China will exceed 64Mt.
This is the third time Taiwan Cement has acquired China’s medium- and small-sized cement plants so far this year, following the acquisition of Gangan cement plant and Scitus Cement (China) Holdings in Guizhou province.
Taiwan Cement spent NT$11.3bn to complete the acquisition projects, helping it boost capacity by 15.4Mta. C.C. Huang, vice president of Taiwan Cement, said his group already has two production lines in Chongqing with a capacity of 4Mta of cement. After acquiring Kehua, the group will see capacity amount to 11Mta of cement in Chongqing, meeting one-fourth of Chongqing’s market demand.