China's biggest state-owned chemical firm announced on Monday it will buy Germany's KraussMaffei Group, which makes machinery for producing plastics and rubber, for 925 million euros. China National Chemical Corp., also known as ChemChina, said the planned acquisition would mark the largest investment ever in Germany by Chinese companies. The Chinese government has encouraged its state companies to invest overseas to secure supplies of raw materials and gain expertise in international business. ChemChina last year announced the acquisition of Italian tire maker Pirelli in a 7.4 billion-euro deal. ChemChina - one of more than a 100 state-owned enterprises that reports directly to the central government - has formed a consortium with Guoxin International Investment Corp. and AGIC Capital to acquire the German company from private equity firm Onex Corp., the statement said. ChemChina Chairman Ren Jianxin said in the statement that the move would allow his firm to expand product offerings. The deal is still subject to antitrust clearance, but ChemChina has pledged to retain the current management and employees as well as keep KraussMaffei's headquarters in Munich.