Dangote Cement Seals $800 Million Itori Expansion Deal

Dangote Cement has signed an $800 million agreement with Sinoma to double its Itori plant capacity to 12 million metric tonnes.

NGN Market

Written by NGN Market

·3 min read
Dangote Cement Seals $800 Million Itori Expansion Deal

Dangote Industries Limited has signed a Memorandum of Understanding worth over $800 million with Sinoma International Engineering Co. Ltd. The agreement aims to expand the Dangote Cement plant in Itori, Ogun State, doubling its production capacity from six million to 12 million metric tonnes annually.

The agreement was signed on August 4, 2026, by the President of Dangote Group, Aliko Dangote, and the Chairman of Sinoma International Engineering Co. Ltd., Lin Zhong. The expansion project is designed to strengthen Nigeria's position as a leading cement producer and exporter on the continent.

Doubling Capacity at Itori Plant

Aliko Dangote disclosed that the expansion project commenced before the formal commissioning of the existing plant. The company expects the new capacity to be fully operational within the next 22 months.

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Dangote attributed the expansion decision to the Federal Government's renewed drive to encourage the use of concrete for road construction. He expressed appreciation to President Bola Tinubu for providing an enabling environment for businesses to thrive.

Sinoma Chairman, Lin Zhong, stated that his company is committed to providing its best technical know-how and equipment. The collaboration forms part of the Dangote Group's 2030 strategy and vision.

Expanding the Lagos Export Terminal

The second contract signed under the agreement focuses on expanding the Dangote cement export terminal in Lagos. This facility supports exports to other West African countries and Cameroon in Central Africa.

The additional capacity will improve the company's ability to serve both domestic and export markets. It is also expected to contribute to Nigeria's manufacturing sector and foreign exchange earnings through increased regional trade.

Broader Four-Year African Expansion Strategy

The $800 million Itori expansion is part of a larger investment strategy. In March 2026, Dangote Cement announced plans to invest $1 billion over the next four years to expand its production capacity across Africa.

The four-year strategy was disclosed during an investor conference call by the company's Chief Financial Officer, Gbenga Fapohunda. The investment aims to strengthen Dangote Cement's footprint across key African markets to meet rising infrastructure demand.

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