Olarinde Idowu
Dangote Group has entered a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., one of China’s leading construction machinery manufacturers. The deal is set to accelerate the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day, positioning it as the largest refinery in the world.
The agreement will allow the Group to acquire a wide range of advanced construction equipment to support ongoing and upcoming projects across refining, petrochemicals, agriculture, and large-scale infrastructure development. These new assets will complement existing machinery already deployed for the refinery expansion, which is expected to be completed within three years.
Beyond refining, the expansion programme will increase polypropylene production from 900,000 metric tonnes per year to 2.4 million metric tonnes per year. Nigeria’s urea capacity will triple from 3 million to 9 million metric tonnes per year, alongside an additional 3 million metric tonnes in Ethiopia, cementing the Group’s status as the world’s largest urea producer.
Production capacity for Linear Alkyl Benzene (LAB) will also rise to 400,000 metric tonnes per year, making Dangote Group Africa’s largest producer and strengthening supply to the detergent and cleaning agents sector. Additional base oil production capacity is also included in the broader expansion plan.
In a statement, the Group described the agreement as a strategic investment designed to deepen its construction capabilities and accelerate its ambition to build a $100 billion enterprise by 2030.
“The additional equipment we are acquiring under this partnership will significantly enhance project execution. This investment positions us to become the leading construction company in the world,” the statement said.
Dangote Group continues to drive expansion and regional market growth as it works toward its long-term goal of establishing a $100 billion enterprise by 2030.
