Dangote Group has signed a $400 million agreement with China’s XCMG Construction Machinery Co., Ltd. to acquire advanced construction equipment, as it accelerates the expansion of its petroleum refinery and broader industrial operations.
The deal will support the expansion of the Dangote Petroleum Refinery and Petrochemicals from its current capacity of 650,000 barrels per day to 1.4 million barrels per day — a scale that would position it as the largest refinery in the world once completed.
The company said the new equipment will strengthen construction capacity across its refining, petrochemical, agricultural, and infrastructure projects. It expects to complete the refinery expansion within three years.
The expansion programme also includes a major increase in petrochemical output. Polypropylene production will rise from 900,000 metric tonnes per year to 2.4 million metric tonnes annually, while Nigeria’s urea production capacity will triple from 3 million to 9 million metric tonnes per year. Combined with its 3 million metric tonnes annual capacity in Ethiopia, Dangote Group will reinforce its position as the world’s largest urea producer.
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The group will also expand its production of linear alkyl benzene (LAB) to 400,000 metric tonnes per year, strengthening supply to detergent and cleaning product manufacturers and establishing Dangote as Africa’s largest producer of the industrial chemical. The expansion plan also includes additional base oil production capacity.
Dangote Group described the agreement as a strategic investment aimed at strengthening its construction capabilities and accelerating its long-term growth strategy.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects,” the company said. “With this investment, we are positioning ourselves to become the number one construction company in the world.”
The expansion forms part of Dangote Group’s broader ambition to build a $100 billion enterprise by 2030, driven by large-scale industrial projects and regional market expansion.