Dangote Group has signed a $400 million agreement with China’s XCMG Construction Machinery Co., Ltd. to acquire advanced construction equipment, as it ramps up expansion of its petroleum refinery and wider industrial operations.
The deal will support the expansion of the Dangote Petroleum Refinery and Petrochemicals from its current 650,000 barrels per day to 1.4 million barrels per day, a scale that would make it the largest refinery in the world once completed.
The company expects the project to be completed within three years.
Beyond refining, the new equipment will strengthen construction capacity across Dangote’s petrochemical, agricultural, and infrastructure projects. Polypropylene production is set to increase from 900,000 metric tonnes annually to 2.4 million metric tonnes, while Nigeria’s urea production capacity will triple from 3 million to 9 million metric tonnes per year.
Combined with its Ethiopian operations, Dangote Group is projected to become the world’s largest urea producer.
The expansion will also boost the production of linear alkyl benzene (LAB) to 400,000 metric tonnes annually, enhancing supply to detergent and cleaning product manufacturers and cementing Dangote’s status as Africa’s largest producer of the industrial chemical.
Additional base oil production capacity will also be added.
Describing the agreement as a strategic investment, Dangote Group said the acquisition would enhance execution across its projects and support its long-term growth ambitions.
“With this investment, we are positioning ourselves to become the number one construction company in the world,” the company stated.
The expansion aligns with Dangote Group’s broader ambition to build a $100 billion enterprise by 2030, driven by large-scale industrial projects and regional market expansion.
