Dangote Group seals $400m equipment deal with XCMG Construction Machinery Co., Ltd. to accelerate refinery expansion

By Adelabu Jumoke 

Dangote Group has signed a $400 million agreement with XCMG Construction Machinery Co., Ltd. to procure advanced construction equipment, marking a major step in the accelerated expansion of its petroleum refinery and broader industrial operations.

The investment will support the scale-up of the Dangote Petroleum Refinery and Petrochemicals from its current processing capacity of 650,000 barrels per day (bpd) to 1.4 million bpd. Upon completion, the facility is projected to become the largest refinery in the world.

According to the company, the newly acquired equipment will significantly strengthen construction capacity across its refining, petrochemical, agricultural, and infrastructure projects. The refinery expansion is expected to be completed within three years.

As part of the broader expansion programme, petrochemical output will rise substantially. Polypropylene production will increase from 900,000 metric tonnes per year to 2.4 million metric tonnes annually. Nigeria’s urea production capacity will also triple from 3 million to 9 million metric tonnes per year. When combined with its 3 million metric tonnes annual capacity in Ethiopia, the group is set to reinforce its position as the world’s largest urea producer.

In addition, production of linear alkyl benzene (LAB) will expand to 400,000 metric tonnes per year, enhancing supply to detergent and cleaning product manufacturers and establishing the company as Africa’s largest producer of the industrial chemical. The expansion plan also includes increased base oil production capacity.

Describing the agreement as a strategic investment, the group said the partnership will enhance execution capabilities and accelerate its long-term growth ambitions.

“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects,” the company stated. “With this investment, we are positioning ourselves to become the number one construction company in the world.”

The expansion forms part of the group’s broader ambition to build a $100 billion enterprise by 2030, driven by large-scale industrial projects and continued regional market expansion.