It is reported that Ningxia Qinglong Pipes Industry plans to invest CNY 591.48 million to build a pipe production facility in the Shanxi Qingxu Economic Development Zone over three phases with CNY 217.34 million to be spent in the first phase.

Upon completion, the production facility will manufacture 120 kilometers of pre stressed concrete cylinder pipes per year and the company will have 16 rigid PVC pipe production lines and 12 high density polyethylene pipes production lines. In addition, it will build eight production lines for water saving irrigation pipes and two production lines for pre stressed steel concrete pipelines.

According to the filing, Qinglong Pipes will contribute CNY 49.5 million for the establishment of Shanxi Qinglong Pipeline in return of a 99% stake. Ningxia Qinglong Plastic Pipeline will pay CNY 500,000 for a stake of 1%.

The production facility is expected to generate total annual profit of CNY 116.55 million on revenue of CNY 792 million once it is operational.

(Sourced from Shanghai Securities News)