Ovie Adasaji
Nigeria is set to witness increase in the production of polypropylene as Dangote’s Petrochemical launches operation.
Group Executive Director, Strategy, Capital Projects & Portfolio Development of Dangote Industries Limited, Devakumar Edwin gave the hint while sharing updates on the petrochemical plant in Lagos.
According to Edwin, the $2bn Petrochemical Plant which has the capacity to Produce 77 Grades of Polypropylene will drive investment in the downstream industries massively. He added that the investment will also generate huge value addition in the country, generate employment, increase tax revenues , reduce foreign exchange outflow and increase the Gross Domestic Product (GDP) of the country.
He also hinted that with a 900,000 metric tonnes per annum capacity, the plant which is near completion at its Ibeju-Lekki location alongside the Dangote Refinery in Lagos state, will have a turnover of $1.2 billion, and has been strategically positioned to cater for the demands of the growing plastic processing downstream industries; not only in Africa, but also in other parts of the world.
“The Dangote Petrochemical plant is being built alongside the refinery. Primarily, the Dangote Petrochemical Plant is going to 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.”
“The petrochemical plant would 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. There is no foreign exchange for manufacturers to import raw materials. The Dangote Petrochemical 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, the country’s downstream sector will also benefit hugely from the availability of petrochemicals in the country”, Edwin explained further.
