ChemChina agrees to buy German machinery maker KraussMaffei

China National Chemical Corp agreed to buy German machinery maker KraussMaffei Group from Canada's largest buyout firm in a deal valued at about $1 billion to help the Chinese State-controlled company upgrade its expertise in manufacturing plastics and rubber.

China's biggest chemicals company will make the transaction at an enterprise value of 925 million euros ($1 billion) from Onex Corp and its affiliates, according to a statement on Monday.

ChemChina, as the company is known, will team up with Guoxin International Investment Corp and Henry Cai's AGIC Capital in the deal, which is expected to be completed during the first half of the year, according to the statement.