Dangote Group signs $400 million XCMG deal to expand refinery  

Dangote Group has signed a $400 million equipment agreement with China’s Xuzhou Construction Machinery Group, known as XCMG, as it pushes ahead with plans to expand its oil refining and industrial operations, the company said Tuesday. 

The deal covers a broad range of heavy-duty machinery that will be deployed across projects under construction, including refining, petrochemicals, agriculture and infrastructure.

Dangote said the new equipment will strengthen execution and reduce reliance on third-party contractors as construction activity intensifies.

Refinery, petrochemicals output scale sharply

The group said the machinery will support work tied to its refinery expansion, which targets a total capacity of 1.4 million barrels per day within three years.

The equipment will complement assets already on site, helping to accelerate timelines across multiple units linked to the complex. 

Beyond fuels, the expansion programme includes a sharp increase in downstream and petrochemical output. Polypropylene capacity is set to rise to 2.4 million tons a year from 900,000 tons.

Urea production in Nigeria is expected to triple to 9 million tons annually, adding to an existing 3 million-ton plant in Ethiopia. 

The group also plans to lift output of linear alkyl benzene, a key detergent input, to 400,000 tons a year, which would make it the largest supplier in Africa. Additional base-oil capacity is included in the expansion plan.

Dangote scales industry toward $100 billion goal

Dangote Group described the XCMG agreement as part of a broader investment push aimed at building scale across its industrial businesses and supporting its goal of becoming a $100 billion enterprise by 2030. 

“The additional equipment we are acquiring under this partnership will significantly improve how we deliver our projects,” the company said in a statement. 

Dangote refinery hits 650kbd, India deal

The $20 billion Dangote Petroleum Refinery owned by Africa’s richest man, Aliko Dangote, began operations in 2024 after years of delays and has reached its nameplate capacity of 650,000 barrels per day.

The facility is expected to play a central role in Nigeria’s fuel supply, cutting imports and supplying markets across West and Central Africa as capacity expands. 

Last year, Dangote also signed agreements in India, including a deal with Honeywell for licensing and engineering work on a proposed 750,000-barrel-per-day greenfield facility.