The state-owned China National Petroleum Corporation (CNPC) announced on Monday, August 9 that its subsidiary Bohai Equipment Manufacturing Co. Ltd has signed a strategic framework agreement with Xinjiang-based Chinese steelmaker Bayi Steel Company, a subsidiary of Shanghai-based Baosteel Group, to jointly establish a steel pipe production base in Xinjiang.
With the development of petroleum projects in the Xinjiang Uyghur Autonomous Region by CNPC, the demand for pipes from Xinjiang and western China has reached new peak levels. Both Bohai Equipment and Bayi Steel plan to bring together their respective advantages in the agreement, including the product and geographical advantages of Bayi Steel and the equipment and technological advantages of Bohai Equipment.
Bayi Steel is the most competitive modern steel enterprise in western China, while Bohai Equipment Manufacturing Company is the biggest integrated oil equipment manufacturing enterprise in China.