Taiwan Cement Corp announce that it plans to spend CNY676m (US$1117m) to acquire Sichuan Railway Group Cement via a subsidiary as part of its plans to increase its presence in China.

The acquisition is being made through the company's subsidiary TCC International. Upon completion of the deal, Taiwan Cement's total clinker and cement capacity would be increased by 1.6Mta and 2Mta, respectively .

Currently, TCC International, which is listed in Hong Kong, operates two plants in Sichuan: a 2Mta plant in Guangan and a 4Mta facility in Chongqing. After the acquisition, TCC International is expected to increase its production capacity in Sichuan to 8Mta.

Taiwan Cement said that the acquisition is expected to create synergies for TCC International, helping the company cut operating costs to improve its bottom line.