Dangote Signs $400m Deal with China’s XCMG

Nigerian industrial giant Dangote Group has signed a $400 million agreement with Chinese construction machinery manufacturer XCMG. The deal will provide advanced equipment for the company’s ongoing and upcoming projects.

Refinery Expansion Plans

The agreement supports the expansion of the Dangote Petroleum Refinery & Petrochemicals, increasing capacity from 650,000 barrels per day to 1.4 million barrels per day. This move aims to place the refinery among the largest in the world and meet growing domestic and regional demand.

Modern Equipment for Projects

The partnership enables Dangote to access a wide range of state-of-the-art construction machinery. These machines will be deployed across refining, petrochemical, agriculture, and infrastructure projects, enhancing operational efficiency and project delivery. The new equipment will complement the existing fleet, with the refinery expansion expected to finish in three years.

Boost in Polypropylene and Urea

As part of the growth strategy, Dangote Group will increase polypropylene production from 900,000 metric tonnes per year to 2.4 million metric tonnes. Nigeria’s urea output is set to triple from three million to nine million metric tonnes annually. The Ethiopian facility will maintain its current capacity of three million metric tonnes, contributing to the group’s global urea production.

LAB and Base Oil Production

Annual production of Linear Alkyl Benzene (LAB) will rise to 400,000 metric tonnes, making Dangote the largest LAB producer in Africa and supporting manufacturers of detergents and cleaning products. Additional base oil production capacity will also be added as part of the company’s broader industrial growth plan.

Dangote Vision 2030

This agreement aligns with Dangote Vision 2030, a $100 billion plan to build a pan-African industrial powerhouse. The vision focuses on expanding operations, boosting investments, developing workforce capabilities, creating jobs, and reducing reliance on imports while driving industrial development across Africa.