The Dangote Group is extending its industrial ambitions well beyond fuel production, with its Lekki refinery set to begin large-scale manufacturing of key industrial chemicals used in plastics and detergents, following a new technology agreement with American conglomerate Honeywell that promises to significantly expand the facility’s petrochemical output and global competitiveness.
The partnership, announced from Honeywell’s headquarters in Charlotte, North Carolina, will see the American firm supply advanced process technologies and catalysts to boost output of two critical petrochemical products at the Lekki complex. Under the terms of the arrangement, the Dangote refinery will deploy Honeywell UOP’s Oleflex technology to produce an additional 750,000 metric tonnes of propylene annually, a key input in the manufacture of packaging materials, consumer goods, and a wide range of industrial products.
The facility will also integrate a suite of Honeywell’s petrochemical technologies to produce 400,000 metric tonnes of linear alkylbenzene per year, a primary ingredient in detergents and other cleaning and surfactant products used in both households and industrial settings. At full production, the Lekki facility’s linear alkylbenzene output is expected to rank among the largest in the world.
Dangote Group President Aliko Dangote described the partnership as a reinforcement of the company’s broader ambition to reduce Nigeria’s dependence on imported industrial inputs and position the group as a globally competitive petrochemical supplier.
“Our continued collaboration with Honeywell advances our vision to strengthen Nigeria’s industrial sector, supporting the nation’s supply chain independence and economic growth. Honeywell’s technologies enable us to help the region meet rising demand for consumer and industrial goods, positioning Dangote as a global supplier and driving viable economic development throughout West Africa,” he said.
Honeywell UOP President Rajesh Gattupalli said the deployment of advanced process technologies and digital solutions would enable the refinery to maximise throughput while meeting growing global demand for essential petrochemical products. He described the collaboration as a demonstration of how advanced technology could help manufacturers respond to the world’s expanding need for industrial chemicals.
The agreement also supports Dangote’s broader plan to expand its refining capacity from 650,000 barrels per day to approximately 1.4 million barrels per day by 2028, a target that would potentially make it the largest petroleum refinery in the world.
In a separate but related development, Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion through a rights issue, subject to regulatory approvals. The decision was ratified by shareholders at the company’s 20th Annual General Meeting in Lagos, with the board authorised to issue ordinary shares under terms and conditions of its choosing, including provisions for underwriting and the possibility of offering unsubscribed shares to other interested investors.
The planned capital raise is aimed at strengthening the company’s financial base and supporting long-term growth across its operations, particularly in line with Nigeria’s push for greater self-sufficiency in sugar production through backward integration. The fundraising ranks among the largest rights issues in Nigerian corporate history.
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