October 07, 2008

Xinxing Pipe buys 55% stake in Chuanjian Pipe

It is reported that Xinxing Pipe Group signed increasing capital and recombination contract with Chuanjian Pipe Co in province Sichuan in Beijing on November 13th 2007. Xinxing Pipe Group would invest CNY 100 million in Chuanjian Pipe Co in order to recombine the market in southwest of China. After the investment, Xinxing Pipe Group will hold 55% stocks of Chuanjian Pipe Co.

Xinxing Pipe Group said that the aim of the investment is to recombine casting pipe market in southwest of China, to complete strategy position and to expand market shares in southwest of China. It is said that both the expanding ability of new products and the quality of products should be improved by enlarged capital and advanced technology.

Xinxing Pipe Group would increase the capacity of 150,000 tonnes of casting pipes and 15,000 tonnes of pipe settings, while total capacity could be increased from 1.2 million tonnes up to 1.35 million tonnes, which is favorable for the company to found a suitable industrial strategic position, to merger casting pipe products market in southwest of China and to raise ability in competition.