Posted on 27 May 2020
Steel pipe manufacturers in the Songyang region of Zhejiang province plan to increase production capacity this year. Songyang also wants to build the region into a major stainless steel seamless pipe production base in Zhejiang, Kallanish notes from local media.
Songyang Hongtai Stainless Steel plans to expand its original annual production capacity of 40,000 tonnes/year to 100,000 t/y. The company has invested CNY 200 million ($28m) to develop and purchase new equipment, and is negotiating with the local government for new land.
More producers have also expressed their intentions to improve capacity along with the development of the local pipe industry. The local government is looking to build a 1,000-acre stainless steel pipe production base.
The Songyang stainless steel pipe industry was launched in 2004. The sector is already the leading industry in the local area, with an annual output value of CNY 6.256 billion last year, accounting for 46.1% of the industrial output of the county. Amongst this, the output of stainless steel seamless pipes is about 280,000 tonnes, accounting for about 30% of China's total output of this kind of product.
