Dangote Group of Nigeria has signed a contract with Chinese heavy duty truck company, Sinotruck, for the supply of 1,700 heavy trucks and 1,700 semi-trailers, as it embarks upon expanding its distribution networks  On the home front.

Following an agreement reached earlier this month, both parties – led by Dangote Group Founder and President, Alhaji Aliko Dangote and Sinotruk’s Chairman, Ma Chunji – signed the contract in Beijing.

Final technicalities on the deal were however concluded on the eve of the state visit to China by Nigeria’s President Goodluck Jonathan – which started on Tuesday.

Emphasizing the importance of the transaction, the group said the vehicles will be used to expand Dangote’s ground fleet, which it says is “a critical component of its extensive distribution network.”

According to Chinese News Service (CNS), the network is crucial to the domestic and international availability of the wide range of products manufactured by the various business units of the group including cement, industrial and edible salt, food and other consumer items.

It added that this vehicle export deal will create enormous employment opportunities for Sinotruk in China and for Dangote Group in its African base, noting that there was significant support from agencies and institution of both countries to see the contract signed.

The agreement, according to analysts, marks a significant milestone in China’s trade relations with the West African nation.