According to the state-owned China National Petroleum Corporation (CNPC), on May 10 its subsidiary Bohai Equipment Manufacturing Co. (BHEM) broke ground for its new steel pipe project in Kemen Economic Development Zone in the county of Liangjiang in Fujian Province, China. A total of RMB 958 million ($152.55 million) will be invested in the project to construct two steel pipe production lines and auxiliary facilities. The production lines are expected to produce an aggregate of 250,000 mt of premium quality spiral welded steel pipe and electric resistance welded (ERW) steel pipe per year, with an estimated annual output value of RMB 2 billion ($318 million).
The project in question will be divided into two phases. In the first phase, a spiral welded steel pipe production line with an annual output capacity of 150,000 mt will be built and is expected to be completed in June 2013. In the second phase, an ERW pipe production line with an annual output capacity of 100,000 mt will be built, with construction due to be completed by the end of 2014.