The Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd. to fast-track the expansion of its refinery and other strategic projects.
The deal is expected to accelerate the ongoing expansion of the Dangote Petroleum Refinery & Petrochemicals from its current 650,000 barrels per day capacity to 1.4 million barrels per day. Upon completion, the refinery is projected to become the largest in the world.
Under the agreement, the Group will acquire a wide range of advanced construction equipment to support ongoing and upcoming projects spanning refining, petrochemicals, agriculture and large-scale infrastructure development. The newly procured equipment will complement existing assets already deployed to drive the refinery expansion, which is scheduled for completion within three years.
Beyond refining, the expansion programme will significantly boost petrochemical output. Polypropylene production is set to 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, in addition to the 3 million metric tonnes per annum capacity in Ethiopia, reinforcing the Group’s position as the world’s largest urea producer.
Production capacity for Linear Alkyl Benzene (LAB) will also increase to 400,000 metric tonnes per annum, positioning the company as the largest producer in Africa and strengthening supply to detergent and cleaning agent manufacturers. Additional base oil production capacity forms part of the broader expansion strategy.
In a statement, the Group described the agreement as a strategic investment designed to deepen its construction footprint and accelerate its ambition of building a $100 billion enterprise by 2030.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects. With this investment, we are positioning ourselves to become the number one construction company in the world,” the statement said.
The Dangote Group said it is intensifying expansion and regional market development efforts as it advances toward its long-term vision of becoming a $100 billion enterprise by 2030.
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