Bid & Tender
Chinese Firm Plans $20mn Steel Pipe Manufacturing Unit in Sohar

Date : Dec 17, 2015

China-based Jiangsu Chanbao Steel Tube Company is planning to set up a $20 million manufacturing unit in Sohar for producing 50,000 tonnes of special steel pipes per annum for a wide range of industries including oil and gas, chemical and automobile industry.


Sohar Port and Freezone has signed a lease agreement with Jiangsu Changbao Steel Tube, which produces seamless steel pipes for a broad range of industries including petroleum, chemicals, automobile and machinery manufacturing.


The signing ceremony to finalise the new contract took place on Sunday with Sohar Port and Freezone chairman Sultan bin Salem Al Habsi.


The new manufacturing facility, which will be located in Sohar Freezone, involves an initial investment of approximately $20 million and will specialise in the production of steel piping and related products for the Omani and regional oil and gas industries.


It is estimated that the annual capacity at the new plant will be 50,000 tonnes of steel pipes and tubular products, with part of the output destined for export to the Gulf Cooperation Council (GCC) and other markets.


Billed as one of China's oldest seamless steel tube mills, Jiangsu Changbao specialises in the manufacture of high-end pipes and tubular products for the oil and gas industry. Its expansive facilities in China, comprising five hot-rolling mills and eight treading lines, are equipped to produce 750,000 tonnes of seamless steel tubes, including 250,000 tonnes of tubing, 250,000 tonnes of casing and 150,000 tonnes of boiler pipes every year.


Aside from the oil and gas industry, the company's products also cater to the power generation and energy sectors, and are marketed across the world, including Europe, the United States, Commonwealth of Independent States (CIS), Africa, Middle East and other regions.


"We are delighted to have signed this new lease agreement with Jiangsu Changboa. Changbao, (which) is already a supplier for a number of Sohar tenants, including METS, and as with all our work here in the Freezone, we hope to eventually combine projects and provide synergised services to increase ease of business and value for tenants," said Sohar Freezone chief executive officer Jamal Aziz.