The Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd. as part of an ambitious expansion of the Dangote Petroleum Refinery & Petrochemicals, aimed at increasing refining capacity from 650,000 barrels per day (bpd) to 1.4 million bpd.
The move is expected to position the refinery as the largest in the world once completed.
Under the agreement, Dangote Group will acquire a broad range of advanced construction equipment to support ongoing and upcoming projects spanning refining, petrochemicals, agriculture and large-scale infrastructure development. The new machinery will complement existing assets already deployed for the refinery expansion, which is projected to be completed within three years.
Beyond refining, the expansion programme outlines significant increases in petrochemical and fertiliser production. Polypropylene capacity 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. This is in addition to the Group’s existing 3 million metric tonnes per annum capacity in Ethiopia, further consolidating its position as the world’s largest urea producer.
Production of Linear Alkyl Benzene (LAB), a key input in detergent manufacturing, will also increase to 400,000 metric tonnes per annum, strengthening the Group’s footprint as Africa’s largest producer and boosting supply to the cleaning and household products industry. 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 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 company stated.
Dangote Group is currently intensifying regional market expansion and infrastructure development as it advances toward its long-term growth target for 2030.
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