On June 22, Chinese steelmaker Jiugang Iron and Steel and Tianshui Metalforming Machine Tool Co.,Ltd, both based in northwestern China, signed an agreement for the formation of a joint venture project for the production of large diameter longitudinally submerged arc welded pipes and rectangular tubes.
The total investment is RMB 690 million ($101.3 million). After the construction is completed, the project output will be 150,000 mt of oil and gas line pipes and 100,000 mt of rectangular tubes per year. Annual revenues will reach RMB 2.3 billion ($0.337 billion). Pipes produced will supply pipeline constructions in western China and Central Asia, and will also reduce dependence on exports. The prospects for the project are said to be good due to positive market demand and ongoing economic development.