Dangote Group has signed a $400 million agreement with China’s XCMG Construction Machinery Co., Ltd., one of the world’s leading manufacturers of construction equipment, to acquire a wide range of advanced machinery aimed at accelerating its refinery and infrastructure projects. The deal is set to support the ongoing expansion of the Dangote Petroleum Refinery & Petrochemicals, which is being scaled from 650,000 barrels per day to 1.4 million barrels per day, positioning it to become the largest refinery in the world.
The agreement will see the Group acquire additional construction equipment to complement its existing assets, enabling faster and more efficient execution of projects not only in refining but also in petrochemicals, agriculture, and other large-scale infrastructure developments. The refinery expansion is expected to be completed within three years.
Alongside the crude processing capacity increase, the programme will significantly boost polypropylene output, growing from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum. Urea production capacity in Nigeria will triple from 3 million to 9 million metric tonnes per annum, supplementing the Group’s 3 million metric tonnes per annum capacity in Ethiopia, thereby strengthening Dangote Group’s position as the world’s largest urea producer.
Production of Linear Alkyl Benzene (LAB), a key component in detergents and cleaning agents, will also rise to 400,000 metric tonnes per annum, further cementing the Group’s status as Africa’s largest LAB producer. Additional base oil production capacity is also part of the broader expansion plan.
In a statement, Dangote Group described the agreement as a strategic investment designed to deepen its construction capabilities and accelerate its ambition to build a $100 billion enterprise by 2030. “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.
The investment aligns with Dangote Group’s broader growth strategy, which includes scaling refining and petrochemical operations, expanding regional market presence, and building a diversified industrial enterprise capable of competing globally.