CNPC unit breaks ground on pipeline parts manufacturing plant in Xinjiang
Shanghai. July 12. INTERFAX-CHINA - Bohai Petroleum Equipment Manufacturing Co. Ltd. (Bohai Equipment), a unit of China National Petroleum Corp. (CNPC), has broken ground on a gas pipeline fittings manufacturing facility in western China's Xinjiang Uyghur Autonomous Region, state-media reported July 11.
Based in the capital city of Urumqi, the first phase of the project has a designed annual production capacity of 1.01 million tons of spiral-welded gas pipeline fittings, Xinhua news agency reported. The first phase is set to begin operations by October 2012, the report said.
Construction of the first phase will cost an estimated RMB 280 million ($43.29 million) while the second phase will require total investment of RMB 1.20 billion ($185.55 million), the report said.
The pipeline equipment manufacturer hopes to achieve annual production value of RMB 1.6 billion ($247.40 million) once the facility is fully operational, according to the report.
In 2010, Bohai Equipment signed a cooperative framework agreement with Baoshan Iron Steel Group (Baosteel Group), China's leading iron and steel maker, to corner the gas pipeline fittings market in northeast China, the report added.
- GW
