Indonesian cement producer PT Semen Gresik Tbk plans to acquire a majority stake in Vietnam-based Thang Long Cement JSC, according to Investor Daily.

Thang Long operates a 2.3Mta works in Quang Ninh province. Surplus output from the works is earmarked for export to Myanmar, Bangladesh and several African countries.

Semen Gresik’s president director Dwi Soetjipto declined to disclose the value of the deal but said the acquisition was funded with the company’s cash resources. However, the company previously budgeted investment of US$1.2bn for the next three years. While the majority of these funds were allocated to increase production capacity by building two new 2.5Mta cement works in West Sumatra and Central Java, the US$300m balance would be invested in acquisitions of cement companies.