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Dangote Group says it has signed a $400 million construction equipment agreement with China’s XCMG Construction Machinery Co. Ltd. as it moves to fast track expansion of its giant refinery and petrochemicals complex near Lagos.
The conglomerate said the new equipment will support work to expand the Dangote Petroleum Refinery and Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day, a scale that would place it among the world’s biggest refining hubs and deepen its impact on fuel supply in Nigeria and the region.
The deal with XCMG, one of China’s major makers of construction machinery, will add a range of heavy equipment to Dangote’s fleet, the company said. Dangote framed the purchase as a boost not only for refinery work but also for other projects across petrochemicals, agriculture and large infrastructure development.
In a statement, the group said the added machinery will complement equipment already deployed on the refinery expansion, which it expects to complete within three years. It did not provide a detailed rollout schedule or specify how the new equipment will be allocated by site, but it described the purchase as aimed at shortening execution timelines.
The expansion plan also reaches beyond fuels. Dangote said it intends to raise polypropylene production from 900,000 metric tons per year to 2.4 million metric tons per year, positioning the complex for a larger role in plastic and packaging supply chains.
In fertilizer, the group said it plans to triple Nigeria’s urea capacity from 3 million to 9 million metric tons per year, alongside an additional 3 million metric tons per year capacity in Ethiopia. The company said the move would strengthen its position in global urea production, a market that matters for food prices because urea is a key nitrogen fertilizer used widely on staple crops.
Dangote also said it will increase output of Linear Alkyl Benzene, used in detergents and cleaning agents, to 400,000 metric tons per year. The group said that would make it the largest producer in Africa, supporting regional manufacturers who often depend on imports for industrial inputs.
The company said additional base oil production capacity is included in the broader expansion program, though it did not provide volumes. Base oils are used in lubricants and industrial fluids, a segment that can benefit from a refinery integrated petrochemical chain.
Dangote tied the equipment deal to a wider ambition. It said the investment supports its goal of building a $100 billion enterprise by 2030 and deepening its construction footprint. In its statement, the company said the new fleet will improve delivery across its projects and claimed it is positioning itself to become the world’s top construction company.
