Western Cement Shares Surge Over 4% Following New Production Line Launch and South African Acquisition

Stock News14:07

Western Cement (02233) rose more than 4%, with shares up 4.15% to HK$2.51 at the time of writing. Trading volume reached HK$34.34 million. The increase follows the official commissioning of the Moroto 6000T/D clinker production line, operated by the company's subsidiary Yaobai International Group, on April 24. According to Yaobai International, the Moroto project represents a flagship investment by Western Cement in the African market. With a total investment of $250 million, the facility has an annual clinker capacity of 2 million tons and can produce 3 million tons of cement per year, generating estimated annual revenue of $300 million. In addition to meeting domestic demand in Uganda, the project will also supply markets in the Democratic Republic of Congo, South Sudan, and the western Great Lakes region of Kenya, significantly enhancing the company's supply chain resilience in East Africa.

Previously, Western Cement entered into a share sale and subscription agreement with South Africa's Africa Sam, agreeing to acquire the company's shares for $145 million (approximately RMB 998 million). Upon completion of the transaction, Western Cement will fully own Africa Sam. The group has expressed optimism regarding the long-term growth prospects of the Southern African market.

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