Shandong Province-based Chinese pipemaker Yantai Baogang Steel Pipe, jointly invested by major Chinese steel producer Baosteel Group and its subsidiary Lubao Steel Pipe company, has announced the completion of its first production phase, stating that products have already been shipped to customers. The company, officially established in May 2009 with a total investment of RMB 5 billion, mainly produces seamless pipes using the world's most advanced three-high rolling mill. The establishment of the producer has filled a gap in terms of seamless pipe production in Shandong Province.
The annual consumption in China of OCTG and high pressure boiler tubes of high added value is about 700,000 mt. As Yantai Baogang Steel Pipe's designed annual production capacity of premium OCTG and high pressure boiler tube is 600,000 mt, China will soon no longer be very dependent on imports of seamless pipes. Thus, Yantai is expected to become one of the most important pipe production bases in the world.