Dangote Refinery and Petrochemicals has entered an exclusive distribution partnership with U.S.-based Premier Product Marketing LLC, a Vinmar Group company, to supply its newly produced polypropylene to markets outside Nigeria and Africa.
The announcement marks another milestone in the company’s expansion strategy, following the start-up of its polypropylene facility in Lekki, Lagos, two months ago.
The deal, announced in a joint statement by Dangote Industries and Vinmar International LLC, coincides with the official launch of polypropylene production at the Lekki complex. With this move, Dangote aims to position its polypropylene as a globally competitive product, manufactured using INEOS’s INNOVENE technology to deliver high-grade materials for packaging, automotive parts, textiles, and construction applications.
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“We’re pleased to partner Vinmar to introduce Dangote Polypropylene™ to the global markets,” said Hajiya Fatima Aliko Dangote, Group Executive Director (Commercial), Dangote Group. “The Dangote Polypropylene will follow other Dangote products to become a global brand known for quality and reliability.”
For Vinmar, a petrochemical distribution giant with a global reach in over 110 countries, the deal builds on an existing long-term relationship with the Nigerian conglomerate.
“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,” said Vishal Goradia, CEO of Vinmar Group.
$2 Billion Plant Eyes Global Share
The polypropylene plant, worth $2 billion, is part of Dangote’s broader $19 billion refinery and petrochemical complex situated in Ibeju-Lekki. The facility is designed to produce up to 900,000 metric tons of polypropylene annually, across 77 different grades, with a targeted turnover of $1.2 billion.
According to reports by S&P Global Commodity Insights, the commissioning of the polypropylene units is one of the final milestones in the complex’s phased operational rollout that began in early 2024. The polypropylene production alone could significantly shift dynamics in Nigeria’s plastic packaging and processing industries, where imports and the local output from Indorama’s Port Harcourt facility have dominated the market.
Two market sources told Platts, a division of S&P Global, that the refinery began distributing its polypropylene in 25kg bags and was already disrupting domestic supply lines. A trade source disclosed that Dangote Group began offering supplies in February, well before full production was announced in March.
The Dangote Group is aiming to cover all of Nigeria’s estimated 250,000 metric tons of annual polypropylene demand through the local facility, drastically reducing the country’s dependence on imports. If successful, this could leave only excess production for export, hence the significance of the Vinmar deal.
Potential Impact on Local and Global Markets
The scale of the new facility suggests that Dangote may be preparing to compete globally, especially in the polypropylene homopolymer segment, where the Middle East has long held sway as the primary supplier to African and some European markets.
S&P Global warned that market participants are already wary of how quickly the Dangote production could capture market share from incumbent suppliers. The complex is designed to run two polypropylene units: one with a 500,000 mt/year capacity and the other 330,000 mt/year, making it the largest single polypropylene site in Africa once fully operational.
Meanwhile, in the local market, price volatility is expected in the short term, as the influx of Dangote’s product could lead to a correction in prices previously inflated by limited supply and high import costs. Industry watchers say the shift could either prompt more local downstream investments or squeeze smaller processors unable to adjust to new supply dynamics.
For Aliko Dangote, the push into global polypropylene markets is part of a broader ambition to reduce Nigeria’s dependence on imports, not just for refined fuels, but also for petrochemical products that form the backbone of multiple industrial sectors.
This strategy aligns with the government’s long-standing drive to promote industrialization through backward integration. However, unlike most other government-backed ventures, the Dangote complex is privately financed and built at scale, making it more likely to deliver real impact in terms of supply substitution and exports.
With the export leg of the polypropylene rollout now underway, attention may soon shift to how Dangote manages production consistency, supply logistics, and international pricing. However, this move signals that the company is betting that its brand, backed by large-scale investment and a trusted international partner, can earn a firm spot in the global petrochemical value chain.