Business

Dangote partners international firm to export Polypropylene beyond Africa

Dangote Refinery and Petrochemicals has announced an exclusive partnership with Premier Product Marketing LLC, a Vinmar company, to bring Dangote Polypropylene to global markets outside Nigeria and Africa.

This comes two months after the oil and gas firm commenced the start-up of its polypropylene facility in Lekki, Lagos.

This disclosure is contained in a joint press statement issued by Dangote Industries and Vinmar International LLC, and seen by Nairametrics.

According to the statement, this strategic agreement coincides with the launch of polypropylene production at Dangote’s world-class refinery and petrochemical complex in Lekki, Nigeria.

More on the partnership

It states that the state-of-the-art plant utilises INEOS’s proven INNOVENE technology to produce high-quality polypropylene grades for a wide range of applications in industries such as packaging, automotive, textiles, and construction.

The Group Executive Director (Commercial), Dangote Group, Hajiya Fatima Aliko Dangote said, ‘’We’re pleased to partner Vinmar to introduce Dangote PolypropyleneTM to the global markets. The Dangote Polypropylene will follow other Dangote products to become a global brand known for quality and reliability.”

Also, the CEO of Vinmar Group, Vishal Goradia, said, “We are proud to expand our relationship with Dangote through this important partnership. Vinmar has been honoured to count Dangote as a valued customer in Nigeria for decades, and we are thrilled to now support the global launch of Dangote Polypropylene.’’

The $2 billion petrochemical plant, located in Ibeju-Lekki, Lagos, is designed to produce 77 grades of polypropylene, with an annual capacity of 900,000 metric tonnes and an expected turnover of $1.2 billion.

The facility is positioned to meet growing demand in plastic processing industries globally.

Established in 1978, Vinmar is a global leader in the marketing and distribution of petrochemicals, employing over 1,500 people across 58 offices worldwide, and serving customers in more than 110 countries.

What you should know

Earlier in March 2025, Dangote Refinery and Petrochemical was reported to have commenced the start-up of its polypropylene facility in Lagos.

S&P Global also reported that starting up Dangote’s 830,000 metric tonnes per year polypropylene site was one of the last outstanding milestones for the oil refining and petrochemical complex in its commissioning sequence, which has been taking place since January 2024.

“Polypropylene production has now started, with supplies being distributed in 25kg bags, and has already threatened to upend the domestic market,” two market sources had told Platts, part of S&P Global Commodity Insights.

A trade source said the Dangote Group began pre-emptively offering polypropylene supplies as early as February.

The President of the Dangote Group, Aliko Dangote, previously set out hopes that the complex would fully cover some 250,000 metric tonnes per year of domestic demand for polypropylene, which is commonly used in plastic packaging and textiles.

Once fully operational, the Dangote facility is set to become Africa’s largest polypropylene production site, producing from two polypropylene units with capacities of 500,000 mt/year and 330,000 mt/year.

S&P Global reports that market participants have warned that the new capacity could quickly capture market share in the existing polypropylene homopolymer market, which has so far been concentrated at Indorama Eleme’s Port Harcourt refinery in Nigeria and drawn imports from the Middle East.

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Collins Nnebedum

Collins Nnebedum is a seasoned writer with a knack for delivering insightful analysis on current affairs and breaking news. His dedication to factual reporting makes him a trusted voice on eNews Nigeria.