Dangote Industries Limited has said its $2bn petrochemical plant located in Ibeju-Lekki, in Lagos is designed to produce 77 different high-performance grades of polypropylene in the country.
The company said in a statementDangote $2B Petrochemical Plant on Sunday that with a turnover of $1.2 billion, the plant, situated alongside the Dangote Refinery, had been strategically positioned to cater to the demands of the growing plastic processing downstream industries in Africa and other parts of the world.
The Group Executive Director, Strategy, Capital Projects and Portfolio Development Industries Limited, Devakumar Edwin, said the plant would drive investment in the downstream industry, generate huge value addition, create jobs, increase tax revenues, reduce foreign exchange outflow and increase the Gross Domestic Product of the country.
Edwin, while giving an update on the plant in Lagos, was quoted as saying the petrochemical plant would reduce the demand for foreign exchange from the nation’s treasury to import petrochemical by-products.
He added that the plant currently nearing completion will also embark on the production of polyethylene products in the nearest future.
“The Dangote Petrochemical plant being built alongside the refinery will primarily produce polypropylene products. We are thinking of adding polyethylene products at a later stage.
“We have 77 types of polypropylene, which can go for different usage that we can produce from our petrochemical plant. Currently, the plant is capable of producing about 900,000 tonnes of polypropylene per annum. Our petrochemical plant should be the biggest in Africa.” He said
Edwin said the plant will reduce the demand for foreign exchange from the nation’s treasury to import petrochemical by-products.
“Right now, raw materials from polypropylene are imported into the country even as there is no foreign exchange for manufacturers to import raw materials. The Dangote plant is going to take care of this challenge.
“When the raw materials are locally available, there will be many more people who will be willing to invest in the economy. So, it not just the savings of foreign exchange from petrochemical products’ importation, but the country’s downstream sector will also benefit hugely from the availability of raw materials in the country.” He added.