Hebei Yanshan builds China's largest pipeline equipment manufacturing base
On April 8, the Yanshan County Government in Hebei Province announced in Beijing that by 2010, the county aims to become China's largest base for pipeline equipment manufacturing. This ambitious plan outlines significant growth targets for the industry, including an annual sales revenue of 30 billion yuan, with an average annual growth rate of 26%. By then, there will be four companies generating over 1 billion yuan in sales, ten companies exceeding 100 million yuan, and more than 20 enterprises surpassing 50 million yuan. The industrial added value is expected to reach 9 billion yuan, with a similar 26% annual increase, contributing over 80% to the county’s GDP. Profit and tax will reach 1.05 billion yuan, growing at 26% annually, while employment in the sector will rise to 141,000 people, with an annual increase of 16.7%. Production capacity is projected to exceed 15 million tons, with more than 50% market share in the domestic pipeline equipment sector.
Over the past three decades, Yanshan’s pipeline equipment industry has grown dramatically, becoming the dominant economic pillar of the county. The development of this sector exhibits several notable characteristics.
First, the industry is highly concentrated. Over 650 companies operate within three industrial parks, making up 70% of all local businesses. Among them, 10 large enterprises have annual sales exceeding 100 million yuan, including Zhongyuan, Hongrun, Bohai, Tiantai, and Zengpeng. Notably, Hongrun Group is among the top two domestic producers and the fourth globally in thick-walled alloy steel pipe manufacturing. It also serves as a key manufacturer for national power station piping standards. Zhongyuan Pipe Company has a production capacity of 800,000 tons for spiral and hot-rolled steel pipes, and it owns two of the four nationwide spiral control tube units with a diameter of 2,420 mm.
Second, the product variety is extensive. The county has over 1,300 sets of equipment for pipeline part production and processing, along with 8 hot-rolled and heat-reduced seamless steel pipe lines and 22 spiral steel pipe lines. Pipeline equipment includes elbows, tees, manifolds, valves, and various types of pipes, with over 1,400 varieties across 12 major categories. The diversity covers oil and gas transmission, coal and salt transportation, electricity, and heating, making Yanshan a true "pipeline equipment supermarket."
Third, technological innovation continues to rise. The industry holds 121 patents, and 24 products have filled domestic gaps. For example, P91 three-link pipes replaced Italian imports and now dominate the West-to-East Gas Pipeline market.
Fourth, the market share is strong. By the end of 2007, Yanshan’s pipeline equipment had captured over 40% of the domestic market, with a 50% share in high-pressure special pipe fittings.
Lastly, corporate qualifications are high. Out of 325 pipeline equipment companies in the county, 325 have passed ISO international quality certifications, and over 70 are fixed-point suppliers for PetroChina and Sinopec. Five companies hold API certifications, and one has an ASME certificate, highlighting the industry’s global competitiveness.
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