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Dangote Petrochemical plant to boost local production of plastic, reduces forex demand for imports

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Dangote Petrochemical plant located in Lekki area of Lagos plans to drive investment in the nation’s downstream industries with its 900,000 metric tonnes per annum capacity.

According to a statement from the company, the plant with a turnover of $1.2 billion, is strategically positioned to cater to the demands of the growing plastic processing downstream industries; not only in Africa, but also in other parts of the world.

Dangote Group Executive Director, Strategy, Capital Projects & Portfolio Development, Devakumar Edwin said the Petrochemical plant will generate employment , increase tax revenues, reduce foreign exchange outflow and increase the Gross Domestic Product (GDP) of the country.

The Petrochemical Plant, which is costing the world wealthies blackman, Aliko Dangote $2 billion is said to be nearing completion and would also embark on the production of polyethylene products in the nearest future.

“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.

READ ALSO: Prices of cooking gas up 100% to N7,000 per 12.5kg as govt imposes VAT on LPG imports

“Our Petrochemical plant should be the biggest in Africa,” Edwin stated.

Edwin said the petrochemical plant, when completed and comission for use, 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.

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