Dangote enters into a $400 million equipment agreement with a Chinese company to accelerate refinery expansion
Dangote Group has finalized a $400 million construction equipment deal with XCMG Construction Machinery Co., Ltd., a leading Chinese manufacturer of construction machinery, aimed at expediting the expansion of the Dangote Petroleum Refinery & Petrochemicals.
This initiative seeks to increase refining capacity from 650,000 barrels per day to an impressive 1.4 million barrels per day.
The newly acquired equipment is expected to help position the refinery as the largest in the world while supporting numerous projects spanning refining, petrochemicals, agriculture, and large-scale infrastructure development. The additional machinery will complement current assets already deployed for the refinery expansion, which is anticipated to be completed within three years.
As part of a broader growth strategy, the expansion will significantly enhance production capacity across various sectors. Polypropylene output will rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.
Urea production capacity in Nigeria will be tripled from 3 million to 9 million metric tonnes per annum, alongside a further 3 million metric tonnes per annum in Ethiopia, solidifying the Dangote Group’s status as the largest urea producer globally.
Similarly, Linear Alkyl Benzene (LAB) production will be increased to 400,000 metric tonnes annually, establishing the Dangote Group as Africa’s leading producer and contributing to the supply chain for detergent and cleaning agents manufacturing. Expanded base oil production is also part of this sweeping development initiative.
The Group stated that this agreement represents a pivotal investment under its ongoing strategy to enhance its impact in construction and fuel its vision of growing into a $100 billion enterprise by 2030.
The high-grade equipment introduced through this partnership is expected to improve efficiency and elevate the company’s ability to execute its ambitious projects.
As Dangote Group accelerates its expansion plans and strengthens its foothold in regional markets, it remains focused on achieving its overarching goal of becoming the world’s number one construction company and realizing its bold vision for 2030.
