Dangote Signs $400m Equipment Deal With China’s XCMG To Speed Up Refinery Expansion
By Naija Enquirer Staff
Nigeria’s Dangote Group has signed a $400 million equipment agreement with China’s Xuzhou Construction Machinery Group (XCMG) to accelerate the expansion of its oil refinery toward a planned capacity of 1.4 million barrels per day, the company announced on Tuesday.
The conglomerate said the additional equipment will support several major projects currently under construction, spanning refining, petrochemicals, agriculture, and infrastructure development.
New Equipment To Boost Project Execution
Dangote said the partnership with XCMG will enable it to acquire a wide range of heavy-duty machinery to complement existing assets already deployed for refinery build-out activities.
The company noted that the expansion programme is expected to be completed within three years.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects,” Dangote Group said in a statement.
Petrochemical And Fertiliser Output Set For Major Growth
As part of the expansion strategy, Dangote Group said its polypropylene production capacity will rise sharply to 2.4 million tons per year, up from the current 900,000 tons.
The company also announced plans to triple Nigeria’s urea production to 9 million tons per year. Combined with its existing 3 million-ton urea plant in Ethiopia, Dangote said this would position the group as the largest urea producer globally.
In addition, output of linear alkyl benzene (LAB)—a key raw material used in detergent manufacturing—will increase to 400,000 tons annually, making Dangote the largest LAB supplier in Africa.
The company said additional base-oil capacity is also planned under the refinery expansion programme.
Expansion Aligned With Dangote’s $100 Billion Vision
Dangote Group described the XCMG agreement as a strategic investment aligned with its long-term ambition of becoming a $100 billion enterprise by 2030.
Owned by Nigerian billionaire Aliko Dangote, the company’s $20 billion refinery began operations in 2024 after years of delays. Once fully operational, it is expected to reduce Nigeria’s dependence on imported refined petroleum products and reshape fuel supply dynamics across West and Central Africa.
Source: Reuters
