Xinjiang-based Chinese steelmaker Bazhou Seamless Oil Pipes Company Limited (Bazhou Seamless) will soon start production at the first phase of its new OCTG manufacturing project in Xinjiang with an annual output capacity of 500,000 mt, following the completion of installation of core technology and debugging.
Investment for the first phase of the project will reach a total of RMB 1.480 billion ($222.56 million).Tests have been carried out on a heat treatment production line and installation of two tube processing production lines has been completed. It is expected that construction of the hot rolling production line will be completed on December 26.
After the commissioning of the hot rolling production line in the first half of 2011, the project's annual production capacity will reach 500,000 mt of OCTG, with its output value amounting to approximately RMB 5 billion ($751.9 million) per year.
The second phase of the OCTG project will require another RMB 1-2 billion ($150.4-300.8 million) in investment, with the project's overall OCTG output capacity thus reaching 1 million mt.