The Dangote Group is deepening its push into higher-value petrochemicals, with its refinery in Lekki, Lagos set to start large-scale production of key industrial chemical compounds, together with those for plastics and detergents.
The petrochemical enlargement adopted a brand new Bargain between Dangote Petroleum Refinery and Petrochemicals and Honeywell, below which the American agency will provide superior course of applied sciences and catalysts to spice up output of important feedstocks utilized in plastics and detergents.
In an announcement seen by THISDAY issued from Charlotte, North Carolina, Honeywell stated the collaboration would allow the refinery to considerably scale up production of propylene and linear alkylbenzene (LAB), each thought-about high-margin petrochemical merchandise with robust world demand.
Underneath the Bargain, Dangote will deploy Honeywell UOP’s Oleflex™ know-how to provide an extra 750,000 metric tonnes of propylene yearly. Propylene is a key enter within the manufacture of packaging supplies, shopper items and a variety of commercial merchandise.
The refinery will even combine a set of petrochemical applied sciences to provide 400,000 metric tonnes per 12 months of LAB, a significant ingredient in detergents and different cleansing brokers. At full capability, the Lekki facility is predicted to rank among the many largest LAB production vegetation globally.
“Honeywell will present industry-leading petrochemical course of applied sciences and catalysts to Dangote Petroleum Refinery and Petrochemicals FZE (Dangote) to create plastics and detergents, serving to the area strengthen power safety by decreasing reliance on imports, stimulating industrial progress and strengthening regional provide chains.
“Dangote will use Honeywell UOP’s Oleflex™ know-how to provide an extra 750,000 metric tons of propylene yearly on the refinery, supporting the manufacturing of packaging supplies, shopper items and industrial merchandise. Moreover, Dangote will deploy a set of Honeywell UOP’s petrochemical applied sciences and catalysts to make 400,000 metric tons per 12 months of linear alkylbenzene (LAB), a key ingredient in detergents and surfactants for family and industrial cleansing merchandise. As soon as at full production, Dangote’s Lekki LAB plant will likely be one of many largest on this planet,” the Honeywell assertion stated.
In his feedback, President of the Dangote Group, Aliko Dangote, stated the partnership reinforces the corporate’s ambition to strengthen Nigeria’s industrial base and scale back dependence on imports.
He famous that the adoption of superior processing applied sciences wouldn’t solely meet rising home and regional demand for petrochemical merchandise but additionally place the group as a aggressive world provider.
“Our continued collaboration with Honeywell advances our imaginative and prescient to strengthen Nigeria’s industrial sector, supporting the nation’s provide chain independence and {economic} progress,” stated Aliko Dangote, President of Dangote Petroleum Refinery and Petrochemicals.
“Honeywell’s applied sciences allow us to assist the area meet rising demand for shopper and industrial items, positioning Dangote as a world provider and driving viable {economic} improvement all through West Africa,” he added.
The event marks a strategic shift for the refinery from primarily fuels production into higher-value chemical manufacturing, a phase that usually presents stronger margins and extra steady long-term demand.
Honeywell, which has maintained a long-standing relationship with the Dangote refinery undertaking, stated its applied sciences would enhance operational effectivity, reliability and output throughout each present and new processing models.
In keeping with the corporate, the broader collaboration can be anticipated to help Dangote’s plan to broaden refining capability from 650,000 barrels per day to about 1.4 million barrels per day by 2028, doubtlessly making it the biggest petroleum refinery on this planet.
President of Honeywell UOP, Rajesh Gattupalli, stated the deployment of superior course of applied sciences and digital options would allow the refinery to maximise throughput whereas assembly rising world demand for important petrochemical merchandise.
“Dangote’s ongoing investments in superior course of applied sciences and digital options to maximise effectivity and throughput place it among the many world’s main refinery and petrochemical services,” stated Rajesh Gattupalli, President of Honeywell UOP.
“Honeywell helps drive progress and long-term worth by enhancing reliability and production in present and new services. This collaboration demonstrates how superior know-how might help producers meet the rising world demand for important petrochemical merchandise,” he harassed.
The petrochemical push comes at a time when African economies are looking for to deepen native manufacturing and scale back reliance on imported industrial inputs, significantly in sectors resembling plastics, packaging and family items.
In the meantime, Dangote Sugar Refinery Plc has introduced plans to boost as much as N500 billion by way of a Rights Subject, topic to regulatory approvals.
The choice was permitted by shareholders on the firm’s twentieth Annual Common Assembly (AGM) in Lagos and disclosed in an announcement signed by the Firm Secretary, Temitope Hassan.
In keeping with the corporate, the capital increase is geared toward strengthening its {financial} base and supporting long-term progress throughout its operations.
Shareholders authorised the board to challenge unusual shares below phrases to be decided by the administrators, with provisions for underwriting and the potential for providing unsubscribed shares to different traders.
The transfer displays Dangote Sugar’s technique to broaden its operations, significantly according to Nigeria’s push for better self-sufficiency in sugar production by way of backward integration.
The deliberate fundraising ranks among the many largest rights points in Nigeria’s company historical past and underscores the group’s broader ambition to scale operations throughout each its industrial and shopper items segments.
“…Topic to the approval of the related regulatory authorities, the administrators of the corporate be and are hereby authorised to boost capital of as much as N500 billion by means of Rights Subject by way of the issuance of unusual shares, on such phrases and situations and at such time as the administrators might deem match or decide, and that the administrators be and are hereby additional authorised to do all such issues and execute all such paperwork as could also be obligatory to present impact to this decision.
The rights challenge could also be underwritten on such phrases as could also be decided by the administrators, topic to acquiring the approvals of the related regulatory authorities. Any shares not taken up by present shareholders inside the interval stipulated below the Rights Subject could also be supplied to shareholders of the corporate which have indicated curiosity in buying further shares, on such phrases and situations as could also be decided by the administrators, topic to complying with related regulatory necessities,” a part of the assertion stated.
Emmanuel Addeh
Times Nigeria