Dangote and Foton Motor, a subsidiary of China’s state-owned BAIC Signed a deal

Dangote and Chinese deal

Nigerian billionaire Aliko Dangote has placed a fresh order for more than 1,000 compressed natural gas (CNG) heavy-duty trucks and trailers from Chinese manufacturer Foton Motor, as part of an ambitious push to modernize and green his company’s logistics operations.

The agreement was finalized in Beijing in early March 2026 and is aimed at accelerating the Dangote Group’s transition to cleaner and more cost-efficient transport systems across its pan-African operations.

The new fleet of CNG-powered tractor trucks and semi-trailers is expected to significantly boost the distribution capacity of Dangote Cement and support other key industrial activities within the group. The investment strengthens the company’s supply chain as it continues expanding operations across Africa.

This latest purchase follows a major 2025 acquisition of 4,000 CNG vehicles, which were largely deployed to handle fuel distribution from the Dangote Petroleum Refinery. Together, the two orders represent one of the largest private-sector transitions to gas-powered heavy transport vehicles on the continent.

Beyond the supply of vehicles, the new agreement with Foton includes plans for localized assembly infrastructure, after-sales maintenance systems, and technical support partnerships. The move aligns with Dangote’s broader strategy of strengthening domestic industrial capacity while reducing dependence on imports.

Switching from diesel to CNG is expected to lower fuel costs by an estimated 40 to 60 percent, while also cutting carbon emissions across the group’s logistics network. The transition supports both cost savings and environmental sustainability goals.

Foton Motor, a subsidiary of China’s state-owned BAIC Group, is one of China’s largest producers of commercial vehicles. Dangote already maintains a strong partnership with Chinese manufacturers through a joint venture completely knocked down (CKD) assembly plant in Lagos with Sinotruk, another major Chinese automotive company.

The truck order comes shortly after Dangote signed a separate $400 million agreement in February 2026 with XCMG for heavy-duty machinery to support the expansion of his refinery operations.

The latest deal underscores Dangote’s continued investment in large-scale industrial infrastructure and signals a growing shift toward cleaner energy solutions in Africa’s heavy transport sector.

Source: Omanghana


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