Posted on 19 Jan 2011
Changshu Fengfan Power Equipment (Fengfan), a domestic power pylon manufacturer, will build a pipe pylon facility with a capacity of 80,000 tonnes/year using funds raised from its initial public offering.
Fengfan’s shares began trading on the Shanghai stock Exchange on 18 January, Steel Business Briefing learns from the China Securities Regulatory Commission.
The new project is targeting China’s power grid expansion, especially the construction of ultra-high voltage (UHV) grids that are being built to meet the country’s growing energy demand, Fengfan’s general manager Fan Liyi said at a press conference. He added that the country's utility giant State Grid Corp of China (SGCC) is promoting the use of pipe pylons for UHV and extra high voltage (EHV) power grids.
Fengfan will invest RMB 535m ($81m) to build the new pipe pylon plant, which will boost the company’s pipe-pylon forming capacity to 95,000 t/y from its current 15,000 t/y, according to the firm's prospectus.
The project will take two years to complete though the construction start date has not been scheduled.
Fengfan estimates China’s pipe pylon demand will rise from 305,000 t in 2010 to 442,000 t this year and reach 1.28m t in 2015. Conversely, the country's demand for traditional angle pylons will stabilize at around 3.5m t/y during the period. China’s demand for these pylons during 2011-2015 is expected to reach 4.22mt, due to increasing demand for them for the development of UHV and EHV power grids in the next five years.
Located in eastern China’s Jiangsu province, Fengfan is one of a small group of Chinese power pylon makers that are certified to produce UHV-grade (above 1,000 KV) pylons.
