Steel Pipe to increase 600,000 tons of steel pipe production annually

Chu Kong Steel Pipe may increase its production capacity by 600,000 tons in the future and steel price may not affect the company's costs.

Chen Chang, president from Chu Kong Steel Pipe introduced that 70% of company's funds was used for the construction of production line in the Lianyungang in Jiangsu Province. The production line was estimated to reach 300,000 tons of production annually. Chen pointed out that the company would expand capacity in the further and the new production line was expected to reach 600,000 tons. Meanwhile, the company would increase its market share through mergers and acquisitions selectively. Chen Zhaonian, executive director disclosed that the company planned to set up a joint venture with Middle East Company and establish a welded steel pipe production base in a bid to satisfy the larger demand in the local.