Dangote Refinery, a member of Dangote Group, has signed a $400m construction equipment agreement with XCMG Construction Machinery, a Chinese manufacturer of construction machinery, to boost the capacity of the Dangote Petroleum Refinery & Petrochemicals plant from 650,000 barrels per day to 1.4 million barrels per day at an estimated cost o.
The Refinery expansion plan is a bid to reposition the company among the largest refineries in the world and to enable Dangote to access a wider range of advanced construction equipment for its ongoing and future projects in refining, petrochemicals, agriculture, and major infrastructure development.
As part of this programme, Dangote Group will also increase polypropylene output from 900,000 metric tonnes per annum to 2.4 million metric tonnes, while Nigeria’s urea production capacity is set to triple from three million to nine million metric tonnes annually.
In addition, the expansion includes raising annual production of Linear Alkyl Benzene (LAB) to 400,000 metric tonnes, making Dangote Group the largest LAB producer in Africa and bolstering supply for manufacturers of detergents and cleaning agents. The group will additionally add new base oil production capacity as part of its broader growth strategy.
“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 group said in a statement.
The agreement comes as Dangote Group plans to build a $100bn pan-African industrial powerhouse as part of its Dangote Vision 2030. The Ethiopian facility will continue its current capacity of three million metric tonnes per year, raising the group’s global urea output. Dangote preferred the location for a proposed 650,000 barrels-per-day refinery in East Africa after previously exploring plans in Tanzania. The preference was after reviewing the earlier plans tied to Uganda’s crude export pipeline.
As part of this vision, the company plans to expand operations in key sectors, increase investments across Africa, and develop workforce capabilities to reduce import reliance, supporting job creation, and promote industrial development.
These new machines will add to the assets already in use for the refinery expansion, which is scheduled for completion in three years.
