Construction for Technology Upgrade Begins at Steel Pipe Plant in China

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Researched by Industrial Info Resources (Sugar Land, Texas)--The foundation for Ziyang steel pipe plant's technology-upgrading project was laid in early November. The total investment for the upgrades is $54 million. Upon completion of the project and the start of production, the annual output of steel pipes will go up to 150,000 tons. The anti-rust capability of the pipes will increase to 4.6 million square meters. The plant's infrastructure and product quality will both reach a nationally advanced level. The plant is in central Sichuan Province and is part of China Petroleum Materials and Equipment Corporation (CPMEC), a group company under China National Petroleum Corporation (CNPC) (Beijing).

The unprecedented development of China's oil and natural gas industry has brought about a new wave of steel pipe construction, creating huge demand for quality steel pipes. In an effort to strengthen its steel pipe-making, CNPC has pushed forward reform measures and reshuffled its industry lineup. All the steel-pipe-making plants originally under CNPC have been transferred to CPMEC. After the reform, CPMEC's spiral-welded tube production capability reached 2.35 million tons, ranking fifth in the industry worldwide.

The Ziyang plant was established in 1971. Its products have been widely used in long-distance oil and gas transfer projects like the west-to-east gas transfer project and the project to transfer Sichuan's natural gas to the east. It is the largest and one of the best spiral-welded steel tube makers in western China, with an annual industrial product of $54 million.

The technology-upgrading project will expand the plant's site by 240,000 square meters. More than 50,000 square meters of workshop will be constructed, and 354 sets of steel-pipe-welding facilities will be installed. Upon completion of the technology upgrades, $135 million will be achieved in annual sales, and more than $4 million in profit (taxes inclusive) will be generated every year.

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