December 03, 2008

Xinxing Ductile Pipe signs to regroup Chuanjian Pipe

It is reported that Xinxing Ductile Iron Pipes Company Ltd and Sichuan Chuanjian Pipe Company Ltd have signed a letter of intent to regroup the latter. In a bid to consolidate the Southwest market, Xinxing Ductile Pipe has talked with Sichuan Province based Chuanjian Pipe about production and sale of cast pipe and fittings.

Based on mutual benefit and complementary principle, Xinxing Ductile Pipe will inject capital to the Sichuan pipe maker and take shareholding of not less than 55% in the regrouped one.

As the largest ductile cast iron pipe producer in West China, Chuanjian Pipe can produce 100,000 tonnes per year of centrifugal ductile cast iron pipe and 15,000 tonnes per year ductile iron fittings. Its products have got ISO 9001 and ISO 14001 certificates. Chuanjian Pipe Co has registered capital of CNY 50 million by end of 2006 its total assets reached CNY 201.82 million and revenue up to CNY 155.45 million.

It's planned the company will have 110,000 tonnes per year capacity just after the regrouping and then grow to 200,000 tonnes per year. This regrouping will also help Xinxing Ductile Iron Pipe to form a rational industrial pattern, consolidate southwestern market and improve competitiveness there.

(Sourced from MySteel.net)