It is reported that JFE and Marubeni-Itochu Steel Inc have declared their intent to invest JPY 2 billion in their JV based in Hebei Province for constructing pressing and welding line, processing mill and cutting mill etc and increasing the capacity 66% by summer 2009 to meet the booming demand as a result of large energy consumption.

The Bohai NKK Drill Pipe Co Ltd was jointly established by China Petroleum Materials Equipment General Company, North China Petroleum Management Bureau, NKK, Marubeni-Itochu Steel Inc and Mitsubishi in December 1995.

By summer of 2009, the capacity is schedule to increase to 30,000 tonnes from present 18,000 tonnes. Besides, JFE also said to extend the JV contract by ten years to December 2017.