Dangote Signs $400M Deal with XCMG for Refinery Expansion

The Dangote Group has entered into a $400 million equipment agreement with China's Xuzhou Construction Machinery Group (XCMG) to accelerate the expansion of its oil refinery in Nigeria, targeting a capacity of 1.4 million barrels per day. The deal, announced on Tuesday, will facilitate the acquisition of a wide range of new heavy-duty machinery to complement existing assets deployed in the refinery construction.

The expansion project is anticipated to be completed within three years. As part of this expansion, the capacity for polypropylene will increase to 2.4 million tons per year, and urea production in Nigeria will triple to 9 million tons annually, alongside an existing 3 million ton plant in Ethiopia, positioning Dangote as the largest urea producer globally.

Additionally, the output of linear alkyl benzene, a key raw material for detergents, will rise by 400,000 tons annually, making Dangote the largest supplier in Africa. This strategic investment aligns with the company's ambition to become a $100 billion enterprise by 2030.