Taiwan Cement Corp announced that its subsidiary TCC International Holdings Ltd is planning to set up a production base in Shaoguan in China’s Guangdong province. TCC International has signed an agreement with the Shaoguan authorities for the investment which is expected to total 1.85 billion Chinese yuan. The investment project is pending approval from the Chinese central government. Under the agreement, TCC will build four production lines at Shaoguan with an annual production capacity of 10 million metric tonnes. In the first stage, the production capacity is expected to reach 5 million metric tonnes. China is phasing out its out-of-date cement production facilities and building new ones to meet demand, boost efficiency, and improve the environment under the on-going 12th five-year economic development plan. Taiwan Cement said as Shaoguan is located along the border between Guangdong province and Guangxi Zhuang Autonomous Region, the new investment is expected to help TCC International secure business from southern China. In addition to the two provinces, the product from the Shaoguan base will be shipped to southern Yunnan province to meet infrastructure needs. Taiwan Cement currently owns a 40 per cent stake in TCC International.