According to Chinese local press reports, the construction of the oil pipe production line in Karamay, in Xinjiang province, northwestern China will start in early 2011. The project is expected to start production before the end of 2011.
On July 16, 2010, Karamay city government, Xinjiang Oilfield Company in China National Petroleum Corporation, Baoji Petroleum Steel Pipe Co. Ltd. had signed a framework agreements for the oil pipe production line project, with a total investment of RMB 345 million ($51.98 million).
The project includes a 1,626 mm diameter spiral pre-finishing welded pipe production line and an inside-outside anti-corrosion coating line. Following its completion, the line is expected to produce 508-1,620 mm large diameter spiral welded pipe with an annual output capacity of 120,000 mt.