Zhongyou BSS (Qiangdao) Petropipe involves a total investment of RMB 1.3 billion. The Chinese firm holds a 51% stake in the JV, and UMW Holdings owns the remaining 49%.
Malaysia's Prime Minister Datuk Seri Najib Tun Razak attended the opening ceremony of the JV and said the move is in line with the country's call to encourage Malaysian companies to invest abroad, especially in China.
The JV is capable of producing 400,000 tons of oil and gas transmission pipes, which will be used for the second China West-East Gas Pipeline Project from Khazakstan to Shanghai, Sino-Russian Crude Oil Pipeline Project and Sino-Burmese Crude Oil Pipeline Project.
Feng Wensheng, general manager of Zhongyou BSS (Qiangdao) Petropipe, estimated that the firm's output could exceed 250,000 tons in 2009 with sales revenue exceeding RMB 2 billion.
So far, the JV is the UMW's sixth plant in China as well as the firm's largest investment in the country.
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