Construction work commenced on April 19 for Hunan Shengli Xianggang Steel Pipe Co., a new joint venture project of Hunan Valin Xiangtan Iron and Steel Co., Shandong Shengli Steel Pipe Co. and Hunan Shengyu New and High-Tech Materials Co., as reported by local media sources in China's Hunan Province.
The project in question will cost a total investment of RMB 1 billion ($159 million), while the first phase is expected to be completed and put into production in the first quarter of 2013.
The total annual output capacity of steel pipe of the new company will reach 700,000 mt, including spiral welded pipe and ERW pipe. Its annual output value is expected to RMB 4.5 billion ($714 million).