China Securities Journal reported that Hengyang Valin MPM Co Ltd, a subsidiary of China Valin Steel, plans to invest CNY 1.676 billion to construct a suit of 180mm seamless pipe continuous rolling machine unit with total construction period of 24 months.

And per plans the designed capacity of the project would reach 80% in the first year of its commissioning and hit 100% in the second year. Payback period will be 9.15 years.

Valin Steel said market demand kept steady growth for seamless pipes in recent years especially for oil pipe, high pressure boiler tube, pipelines; alloy steel pipe and special pipe with annual growth rate averaging above 25%. About 40% market demand centers at 114mm to 180mm.

Hengyang Valin now has two suits of continuous rolling pipe mills 89mm and 340mm and lacks a suit of 114mm to 180mm medium and minor caliber steel pipe machine set.

Hengyang Valin realized revenue of CNY 7.353 billion and net profit of CNY 247 million in 2008. Total assets of the pipe company recorded some CNY 1.8 billion by the end of last year.

(Sourced from China Securities Journal)