(Yicai Global) July 19 -- Changbao Steel Tube aims to capitalize on the rapid development of the shale gas market by building a CNY550 million (USD81 million) factory for pipes used in the sector.
The facility, located in the firm's hometown of Changzhou in eastern Jiangsu province, will produce some 130,000 tons of tubes per year, Changbao said in a statement.
The enterprise aims to produce high-grade petroleum steel pipes and shale gas production pipes from two new heat treatment production lines, as well as a pipe end upsetting line with 120,000 tons annual processing capacity and a pipe thread cutting line capable of processing 100,000 tons of products each year.
Construction is expected to take one year and will be completed on the site of a current Changbao factory so there is no need to purchase new land for the project.
Editor: William Clegg