Dangote Seals $800 Million Deal with Chinese Engineering Giant to Double Ogun Cement Plant Capacity

Dangote Industries Limited has taken another major step toward expanding Nigeria’s industrial capacity after signing a landmark Memorandum of Understanding (MoU) worth over $800 million with China’s Sinoma International Engineering Co. Ltd. to significantly expand its cement manufacturing operations in Itori, Ogun State.

The multi-million-dollar agreement, signed by Aliko Dangote, President and Chief Executive of Dangote Group, and Lin Zhong, Chairman of Sinoma International, will increase the Itori Cement Plant’s annual production capacity from 6 million metric tonnes to 12 million metric tonnes, making it one of Africa’s largest cement production facilities.

The deal, confirmed by industry publications and Nigerian media between August 2 and 3, 2026, represents one of the biggest manufacturing investments announced in Nigeria this year and further reinforces Dangote Cement’s ambition to remain Africa’s leading cement producer.

The expansion is expected to play a vital role in meeting Nigeria’s growing demand for cement, while positioning the country as a major export hub for cement across Africa and other international markets.

Speaking on the agreement, Dangote described the investment as a strategic milestone that reflects the company’s unwavering commitment to supporting Nigeria’s industrialisation and economic transformation.

According to him, the project aligns with the Federal Government’s renewed emphasis on constructing durable concrete roads and strengthening critical infrastructure nationwide.

“This investment is another bold step in our commitment to strengthening Nigeria’s industrial base and reinforcing our leadership in Africa’s cement industry,” Dangote said.

He explained that the expanded facility would not only satisfy increasing domestic demand but also enable the company to supply cement to African countries experiencing shortages, thereby generating additional foreign exchange earnings for Nigeria through exports.

Beyond increasing production, the project is also expected to create thousands of direct and indirect employment opportunities during construction and operation, stimulate local businesses, and deepen Nigeria’s manufacturing value chain.

Chairman of Sinoma International Engineering, Lin Zhong, reaffirmed the Chinese company’s commitment to delivering the project using advanced engineering technology and global best practices.

He said the partnership demonstrates growing international confidence in Nigeria as a preferred destination for large-scale industrial investment despite prevailing global economic challenges.

The Itori expansion forms a major component of Dangote Cement’s Vision 2030 strategy, an ambitious plan aimed at significantly increasing production capacity across Africa while consolidating the company’s leadership in the continental cement industry.

The latest agreement also builds on an earlier strategic partnership between Dangote Industries and Sinoma International signed in March 2026, when both companies entered into a separate multi-project agreement valued at approximately $1 billion.

Industry experts believe the new investment will further strengthen Nigeria’s competitiveness under the African Continental Free Trade Area (AfCFTA) by expanding manufacturing capacity, improving export potential, and attracting additional foreign direct investment into the country’s industrial sector.

Analysts also note that the project comes at a crucial time when African nations are investing heavily in roads, housing, and public infrastructure, creating rising demand for cement across the continent.

Once completed, the upgraded Itori Cement Plant is expected to become one of the largest and most technologically advanced cement manufacturing facilities in Africa, enhancing Dangote Cement’s ability to serve both domestic and international markets while contributing significantly to Nigeria’s economic growth and industrial development.

The latest investment further underscores Dangote Industries’ continued confidence in Nigeria’s economy and its long-term vision of transforming the country into Africa’s leading industrial powerhouse.

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