WestChinaCement (02233) saw its shares climb more than 4% during the morning trading session. At the time of writing, the stock was up 3.35%, trading at HKD 3.35, with a turnover of HKD 50.3782 million.

The surge follows reports that the Moroto 6000T/D clinker cement production line (Phase I) in Uganda, an investment by Yaobai International Holdings Limited, was successfully ignited on January 17th.

This ignition marks the project's official entry into the trial production phase, laying a solid foundation for its full operational launch.

Located approximately 460 kilometers north of Uganda's capital, Kampala, the project is a crucial component of WestChinaCement's strategic footprint in Africa.

As the group's first cement production line constructed using the "parallel contracting" model, the project utilizes internationally advanced thermal process technology, including Humboldt's six-stage preheater and a fourth-generation grate cooler.

The line is designed with a clinker production capacity of 6,000 tons per day, with a practical operating capacity expected to reach between 6,500 and 7,000 tons.

Upon full completion, the project's total cement production capacity will exceed 3 million tons, with estimated annual revenues surpassing $400 million.

It is projected to not only meet domestic demand in Uganda but also supply surrounding regions, including South Sudan, eastern Democratic Republic of Congo, and western Kenya.

By reducing foreign exchange expenditure on clinker imports and generating export earnings, the project is set to significantly bolster Uganda's economic development.

The successful ignition represents another major milestone in WestChinaCement's African expansion and signals the beginning of the countdown towards the project's full operational commencement in 2026.