Taiwan Cement Corp said Wednesday it has agreed to acquire a cement production line in Guizhou Province, southwestern China, to tap into the growing demand on the mainland. Taiwan Cement said it will buy Kaili Shui On from Shui On Construction and Materials Ltd. for HK$218m (US$36m) The deal is subject to approval by Taiwan’s Investment Commission.
Kaili Shui On, which operates a 1Mta line, is located near Quiyang, the capital of Guizhou, and enjoys strategic transportation links to neighboring cities in the province. Currently, Taiwan Cement operates a plant in Quizhou with a capacity of 2Mta and is building two other production lines there with a total capacity of 3Mta.
With the acquisition of Kaili Shui On, Taiwan Cement is expected to boost its annual production capacity in Quizhou to 6Mta by the end of the year.