Zhangzhou Stronghold Steel Works Co. Ltd.

Set on 50 hectares of purchased land at the China Merchants Development Zone in Zhangzhou in China's Fujian Province, Zhangzhou Stronghold Steel Works Co., Ltd. is fully foreign-owned and is one of the largest projects established in the development zone with a total investment of US$60 million on the company's first and second phases.

The first phase is currently in operation on a 16 hectare-area of the plant while future expansion plans are set for a second and a third phase, including the opening of the company's own port.

Production on the first phase of the facility commenced in the middle of 2007 with a spiral welded machine line to manufacture PE-coated pipes for low and medium pressure application for coal, gas, liquid transport and structural uses (planned annual output: 40,000 tons).

Two units of Electrical Resistant Welding production line to produce straight seam welded pipes for gas, water, scaffoldings, furniture-making use and electrical pipelines (planned annual output: 60,000 tons)

Marking the completion of the first phase in the first quarter of 2008, is the installation of ERW-SRM (Electrical Resistance Welding Machine With Stretched Reduced Mill) production lines for API petroleum pipes equipped with advanced seamless technology. These facilities are set to generate product specifications of 21.3mm to 406.4mm outer diameter; 6 to 12 meters length; and thickness ranging from 2.1mm to 12.7mm (planned annual output: 200,000 tons).

A Major Role in China's Steel Manufacturing Industry

With its economy in dynamic growth, China is investing billions of Yuan for infrastructure development while at the same time dealing with the importation of high-end pipes to comply with requirements.

Zhangzhou Stronghold is the first large-scale producer of steel pipes in Fujian and among the few major players in the Southern region, where demand is usually met through importation of the pipes from other provinces scattered around China. The presence of Zhangzhou Stronghold lends fodder to Southern China's demand for this product.

Zhangzhou Stronghold shall soon be among the few big seamless pipe producers in China. Zhangzhou Stronghold can supply up to 406.4 diameter pipes and thus, will beef up the domestic supply of seamless pipes, which is a major component of geological drills, oil wells, shipyards and ports.

Likewise Zhangzhou Stronghold can manufacture X80 Grade steel pipes; X80 technology which makes for better and high pressure properties meeting API standards, which is relatively new to China.