SSW news 05.09 7.0 neu:Layout 1 · Karara project, near Mo-rowa would be subject to the creation of...
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Page 2 www.sswnews.com In the Spotlight Baofeng Mr. Han explained that Bao- feng Steel’s main business scope is the manufacturing and marketing of seamless stainless steel pipes. “We pro- duce all kinds of austenitic stainless steel pipes with dia- meters ranging from 6-630mm in our 67,000sqm seamless pipe factory with an annual capacity of 24,000 tons. We additionally have two warehouses occupying 13,000sqm. Besides the do- mestic market, our products are sold to America, Canada, Southeast Asia and some European countries, such as Italy, the Netherlands, Bel- gium, and Switzerland. Bao- feng products are widely used in the oil & gas, pe- trochemical, aerospace, pharmaceutical, food & bev- erage, pulp & paper and construction markets,” he said. “30% of our products are sold to end users and 70% to traders and distributors,” explained Mr. Xulin Zheng, Vice General Manager of Marketing. “We produce commodity products and engineered products. For in- stance, last year we recei- ved government purchasing orders from Pakistan and Iran, and they introduced additional clients to us this year,” he smiled. “For the domestic market, we also supply products to state owned projects. For exam- ple, we are the only stain- less steel pipes supplier for Zhejiang Zhoushan liquid chemicals transit base proj- ect which will complete the largest distribution center for liquid chemical products in China. Furthermore, all these pipes are totally cus- tomized” he added. Expansion despite crisis Compared with other com- petitors in China, Baofeng was late in joining this mar- ket, yet they have achieved a lot in only seven years time. “We’ve invested RMB 300 million (US $43.9 million) over the last seven years to establish and complete the company and now we are consolidating its capacity. Meanwhile we are planning more investments in pro- duction know-how and de- veloping new high grade quality products for wider applications, such as nu- clear power generation.” An additional investment of RMB 600 million (US $87.8 million) has been planned in the next 3-5 years to change their traditional melting technology from “model casting” to “continuous casting”. This technology will reduce the damage to the environment, save costs and energy, as well as shorten the production line and improve the quality of the final products. “It’s a good opportunity for us to enhance our competi- tiveness,” said Mr. Han when talking about the current economic situation. With 70% of the company’s sales from the domestic mar- ket and 30% from the over- seas market, last year the company hasn’t been influ- enced too much by the crisis. They also try to sell more di- rectly to end users instead of via middle customers, rely- ing on their experience and strength. Additionally, to avoid losses caused by the price drop of nickel, they re- duced the storage of nickel alloy products. “We believe the situation will be recovered in the next one or two years and we are expecting to expand our ex- port business in the coming years,” said Mr. Han. Strict Quality Managing System “Baofeng offers competitive prices for good quality, that’s why the customer prefers our products. To maintain this standard, our Quality Control Department plays an extremely impor- tant role,” Mr. Han said proudly. “Our strict quality managing system and advanced test- ing equipment guarantees the high quality of prod- ucts,” added Mr. Houxiang Zhou, the Chief Engineer of the company. “Our factory has a full set of German-im- ported testing equipment including a universal mate- rial testing machine (WEW- 1000B), an impact testing machine (0~300J), a spec- troanalysis machine, a car- bon and sulphur analysis machine, a metallurgical analysis machine, ultra- sound and eddying test ma- chine, etc.,” he continued. “In each Baofeng plant the operation process is strictly committed to ISO 9000, and so far we have been awar- ded PED, CE, and Rohs Cer- tificates. We are also in the process of achieving ABS, GL, LR, DNV, KR and CCS certifications which we ex- pect to receive by this July.” During the plant tour Mr. Zhou showed Stainless Steel World News a large, green testing machine. “This is something most of our competitors don’t have: a large-diameter hy- Issue 40 - June 2009 Editors Frank Wöbbeking [email protected] Maya George [email protected] Christian Borrmann John Butterfield James Chater Joe Machney David Sear Tel: +49 2821 711 56 10 +31 575 585 270 Publishing Director Donald Wiedemeyer [email protected] Editorial Director Sjef Roymans MA [email protected] Advertising Robert-Jan á Campo [email protected] Nicole Nagel [email protected] Jeanette Ware [email protected] Hui Liu [email protected] Subscriptions Erica Riethorst [email protected] Renate Collet-Gorter [email protected] Press contributions [email protected] Design & Layout Claire Smeets [email protected] Production Linsen Druckcenter GmbH, Kleve Publishing House KCI Publishing B.V. P.O. Box 396 NL-7200 AJ Zutphen The Netherlands Tel: +31 575 585 270 Fax: + 31 575 585 099 [email protected] KCI GmbH Tiergartenstraße 64 47533 Kleve, Germany Tel: +49 2821 711 450 Fax: +49 2821 711 45 69 [email protected] KCI Shanghai Shanghai Ke Sheng Business Consulting Company Room 603, 6F, ChunShenJiang Building, #400 Zhejiang Mid. Road Postcode 200001 Shanghai / PR China Tel: +86-21-6351 9609 Fax: +86-21-6351 9607 [email protected] Subscriptions will be renewed in accordance with Dutch legislation. Subscriptions will be automati- cally renewed for one year and are valid until recall. Notices of cancellations have to be filed three month prior to expiration. Stainless Steel World News is published ten times per year. ISSN 1383-7184 The publishers and the authors state that this magazine has been compiled meticulously and to the best knowledge, however, the publisher and the authors can in no way guarantee the accuracy or completeness of the information. The publisher and authors therefore do not ac- cept any liability for any damage resulting from actions or decisions based on the information in question. Users of this magazine are strongly advised not to use this information solely, but to rely on their professional knowledge and ex- perience, and to check the information to be used. KCI Publishing cannot guarantee the ac- curacy of information provided by participating companies and authorities. The publisher re- serves the right to combine, delete and change sections. The publisher reserves the right to edit and re-use (parts of ) the articles and to dis- tribute the information by any means. All rights reserved. No part of this publication may be re- produced, stored in a retrieval system or trans- mitted, in any form or by any means, electronic or mechanical, photocopying recording or oth- erwise, without the written permission of the publisher. ©2009 KCI Publishing B.V. Baofeng Steel Industrial Co., Ltd – expansion despite crisis Quality, reliability and new investments “We believe that the current economic situation gives us an opportunity to further expand in the next one to two years,” said Mr. Shifeng Han, President of Baofeng Steel Industrial Co., Ltd, manufacturer of seamless stainless steel tubes and pipes. After visiting their seamless tubes and pipes factory in Songyang City, Zhejiang Province, Stainless Steel World News found they have good reason to be optimistic and confident. By Juan Huang Mr Shifeng HAN, president of Baofeng Steel Industrial Co., Ltd The large-diameter hydraulic test machine can handle pipes of 159–530 mm diameter
Transcript of SSW news 05.09 7.0 neu:Layout 1 · Karara project, near Mo-rowa would be subject to the creation of...
Page 2 www.sswnews.com
In the Spotlight Baofeng
Mr. Han explained that Bao-feng Steel’s main businessscope is the manufacturingand marketing of seamlessstainless steel pipes. “We pro-duce all kinds of austeniticstainless steel pipes with dia-meters ranging from 6-630mmin our 67,000sqm seamlesspipe factory with an annualcapacity of 24,000 tons.
We additionally have twowarehouses occupying13,000sqm. Besides the do-mestic market, our productsare sold to America, Ca nada,Southeast Asia and someEuropean countries, such asItaly, the Netherlands, Bel-gium, and Switzerland. Bao -feng products are widelyused in the oil & gas, pe-trochemical, aerospace,
pharmaceutical, food & bev-erage, pulp & paper andconstruction markets,” hesaid.“30% of our products aresold to end users and 70%to traders and distributors,”explained Mr. Xulin Zheng,Vice General Manager ofMarketing. “We producecommodity products andengineered products. For in-stance, last year we recei -ved government purchasingorders from Pakistan andIran, and they introducedadditional clients to us thisyear,” he smiled. “For thedomestic market, we alsosupply products to stateowned projects. For exam-ple, we are the only stain-less steel pipes supplier forZhejiang Zhoushan liquidchemicals transit base proj-ect which will complete the
largest distribution centerfor liquid chemical productsin China. Furthermore, allthese pipes are totally cus-tomized” he added.
Expansion despite crisis Compared with other com-petitors in China, Baofengwas late in joining this mar-
ket, yet they have achieved alot in only seven years time. “We’ve invested RMB 300million (US $43.9 million)over the last seven years toestablish and complete thecompany and now we areconsolidating its capacity.Meanwhile we are planning
more investments in pro-duction know-how and de-veloping new high gradequality products for widerapplications, such as nu-clear power generation.” An additional investment ofRMB 600 million (US $87.8million) has been planned inthe next 3-5 years to changetheir traditional meltingtechnology from “model
casting” to “continuouscasting”. This technologywill reduce the damage tothe environment, save costsand energy, as well asshorten the production lineand improve the quality ofthe final products.
“It’s a good opportunity forus to enhance our competi-tiveness,” said Mr. Han whentalking about the currenteconomic situation. With 70% of the company’ssales from the domestic mar-ket and 30% from the over-seas market, last year thecompany hasn’t been influ-enced too much by the crisis.They also try to sell more di-rectly to end users instead ofvia middle customers, rely-ing on their experience andstrength. Additionally, toavoid losses caused by theprice drop of nickel, they re-duced the storage of nickelalloy products. “We believe the situationwill be recovered in the nextone or two years and we areexpecting to expand our ex-port business in the comingyears,” said Mr. Han.
Strict Quality Managing System“Baofeng offers competitiveprices for good quality,that’s why the customer
prefers our products. Tomaintain this standard, ourQuality Control Departmentplays an extremely impor-tant role,” Mr. Han saidproudly. “Our strict quality managingsystem and advanced test-ing equipment guaranteesthe high quality of prod-ucts,” added Mr. HouxiangZhou, the Chief Engineer ofthe company. “Our factoryhas a full set of German-im-ported testing equipmentincluding a universal mate-rial testing machine (WEW-1000B), an impact testingmachine (0~300J), a spec-troanalysis machine, a car-bon and sulphur analysismachine, a metallurgicalanalysis machine, ultra-sound and eddying test ma-chine, etc.,” he continued.“In each Baofeng plant theoperation process is strictlycommitted to ISO 9000, andso far we have been awar-ded PED, CE, and Rohs Cer-tificates. We are also in theprocess of achieving ABS,GL, LR, DNV, KR and CCScertifications which we ex-pect to receive by this July.”During the plant tour Mr.Zhou showed StainlessSteel World News a large,green testing machine.“This is something most of our competitors don’thave: a large-diameter hy-
Issue 40 - June 2009
Editors
Frank Wö[email protected]
Maya [email protected]
Christian BorrmannJohn Butterfield
James ChaterJoe MachneyDavid Sear
Tel: +49 2821 711 56 10+31 575 585 270
Publishing DirectorDonald Wiedemeyer
Editorial DirectorSjef Roymans MA
AdvertisingRobert-Jan á Campo
[email protected] Nagel
[email protected] Ware
SubscriptionsErica Riethorst
[email protected] Collet-Gorter
Press [email protected]
Design & LayoutClaire Smeets
ProductionLinsen Druckcenter GmbH,
Kleve
Publishing HouseKCI Publishing B.V.
P.O. Box 396NL-7200 AJ Zutphen
The NetherlandsTel: +31 575 585 270Fax: + 31 575 585 099
KCI GmbHTiergartenstraße 64
47533 Kleve, GermanyTel: +49 2821 711 450
Fax: +49 2821 711 45 [email protected]
KCI ShanghaiShanghai Ke Sheng Business
Consulting CompanyRoom 603, 6F, ChunShenJiang
Building,#400 Zhejiang Mid.
RoadPostcode 200001 Shanghai / PR
ChinaTel: +86-21-6351 9609Fax: +86-21-6351 9607
Subscriptions will be renewed inaccordance with Dutch legislation.
Subscriptions will be automati-cally renewed for one year andare valid until recall. Notices ofcancellations have to be filed
three month prior to expiration.
Stainless Steel World Newsis published ten times per year.
ISSN 1383-7184
The publishers and the authors state that thismagazine has been compiled meticulously andto the best knowledge, however, the publisherand the authors can in no way guarantee theaccuracy or completeness of the information.The publisher and authors therefore do not ac-cept any liability for any damage resulting fromactions or decisions based on the informationin question. Users of this magazine are stronglyadvised not to use this information solely, butto rely on their professional knowledge and ex-perience, and to check the information to beused. KCI Publishing cannot guarantee the ac-curacy of information provided by participatingcompanies and authorities. The publisher re-serves the right to combine, delete and changesections. The publisher reserves the right toedit and re-use (parts of) the articles and to dis-tribute the information by any means. All rightsreserved. No part of this publication may be re-produced, stored in a retrieval system or trans-mitted, in any form or by any means, electronicor mechanical, photocopying recording or oth-erwise, without the written permission of thepublisher.
©2009 KCI Publishing B.V.
Baofeng Steel Industrial Co., Ltd – expansion despite crisis
Quality, reliability and new investments“We believe that the current economic situation gives us an opportunity to further expand in the next one to two years,” said Mr. Shifeng Han, President ofBaofeng Steel Industrial Co., Ltd, manufacturer of seamless stainless steel tubes and pipes. After visiting their seamless tubes and pipes factory in SongyangCity, Zhejiang Province, Stainless Steel World News found they have good reason to be optimistic and confident.
By Juan Huang
Mr Shifeng HAN, president of
Baofeng Steel Industrial Co., Ltd
The large-diameter hydraulic test machine can handle pipes of 159–530 mm diameter
SSW news_05.09_7.0 neu:Layout 1 15.06.2009 12:33 Uhr Seite 2
Page 3
In the Spotlight Baofeng
Possible blastfurnace JVSumitomo Metal IndustriesLtd is considering forming ablast-furnace steelmakingventure in India with Bhu-shan Steel Ltd. The new jointventure is expected to bemajority owned by Bhu-shan, with Sumitomo hol-ding a 30 to 40% stake. Theplant is expected to haveannual production capacityequivalent to 3 million ton-nes of crude steel and thetotal investment is estima-ted at JPY 200 billion to JPY300 billion. The project maybe established in West-Bengal and start about2015.
Rio Tinto unitshuts downA subsidiary of Rio Tinto PLCwill close a Quebec metal-lurgical complex and minefor the summer, due to un-certainty in its markets, af-fecting 1800 workers in theprovince. Fer et Titane, forQuebec Iron and Titanium,has announced that its ope-rations in Sorel-Tracy, Que-bec, will be suspended from12 July to 8 September2009. A previously schedu-led shutdown at the end of2009 will also take effectone week sooner than anti-cipated, on 11 December.Company President Jean-François Turgeon said thatthe closing will have mini-mal impact on QIT’s clientsand suppliers.
Boeing &VSMPO form titanium JVA titanium joint venturebetween Boeing andVSMPO-Avisma will be open-ed in July 2009, the GeneralDirector of the state corpo-ration Rostekhnologii, Ser-gei Chemezov, said, follo-wing a meeting with offici-als from Boeing. Theventure will engage in thefinal processing of VSMPOwing-skin assemblies andtheir shipment to Seattle,Washington, USA.
Iron ore projectThe Shire of Morowa haswelcomed the Environmen-tal Protection Authority’sdecision to give conditionalapproval to a USD 1 billioniron ore project at Blue HillsRange. Gindalbie Metals’Karara project, near Mo-rowa would be subject tothe creation of an “A” classnature reserve made up ofparts of the Blue HillsRange and the MungadaRidge.
draulic test machine whichcan handle 159-530mmpipes.“Besides competitive pricesand qualified products,after sale service plays amore and more importantrole in long term businessrelationships. Mr. Zheng ex-plained how Baofeng bringsadded value to their cus-tomers through service,“For domestic customers,we make after-service callsto get feedback from themand our technical workersare sent directly to help withproblems. For foreign cus-tomers, we utilize a feed-back form. The form con-sists of columns regardingto the sales attitude, prod-uct quality, delivery time,etc.
“This impressed our cus-tomers, which is whyBaofeng has been able todevelop long term busi-ness relation ships withthem, and also why moreand more new customersare being introduced tous,” said Mr. Zhengproudly.
High quality products & customers’ trust“Our Research and Devel-opment (R&D) center isalso working on developinghigher grade materialssuch as Monel and In-conel,” Mr. Zheng ex-plained. It’s clear thatBaofeng is ready for the fu-ture and Baofeng considers
its R&D department thesymbol for the futurestrength of the company.With the help of the R&Dcenter, Baofeng will be bet-ter informed about the cus-tomers’ needs and be ableto give professional techni-cal suggestions, which willlead the company to higherheights in the stainlesssteel industry.“Make quality products,and earn our clients’ trust,”explained Mr. Han. “Fromthe very first day, this hasbeen Baofeng’s missionand with our competitiveprice, high quality, goodservice and increasing in-vestments for the future webelieve the company is ableto achieve its objectives.”
Ansteel and Bekaert offi-cially opened a new produc-tion plant for steel cordproducts in Chongqing,China. Ansteel, a leader inthe Chinese steel industryand one of the top steel pro-ducers in the world, andBekaert, global market andtechnological leader in advanced metal transfor -mation and in advancedmaterials and coatings,concluded a strategic part-nership in May 2008 andsubsequently set up a 50/50 joint venture namedBekaert Ansteel Tire Cord(Chongqing) Co., Ltd. An -steel and Bekaert decidedto invest a total of € 150million for the constructionof the new steel cord plant
in Chongqing. The invest-ment takes place in phases.Chongqing is rapidly trans-forming into a new automo-bile metropolis. With thejoint venture plant, Ansteeland Bekaert are respondingto the rising local demandfor steel cord products for tire reinforcement. Theplant currently employs 130employees and will furthergrow in line with market de-mand.
Ansteel and Bekaert open new plant
Sinopec and KPC JVShulin Su, General Managerof China Petroleum Corp.(Sinopec Group) (Beijing)and Chairman of China Pe-troleum & Chemical Co. Ltd(Sinopec) (Beijing), held ameeting with a delegationled by Saad Ali Al-Shuwaib,CEO of Kuwait PetroleumCorp. (KPC) (Kuwait), at theheadquarters of Sinopec.Although no details aboutthe meeting were disclosedby Sinopec Group, an in-sider said that both partiesdiscussed related issues re-garding the largest jointventure refinery so far inChina. As the largest jointventure project ever inChina, the project has aninitial planned total invest-ment of USD 7.3 billion. Ac-cording to the initial
arrangement, Sinopec andKPC will build a large-scalejoint venture refining andchemical enterprise in Nan-sha, the capital city of theGuangzhou province. Theinsider disclosed that bothparties had discussed thereselection of a new site forthe project. The reason forthe change of site is mainlybecause of environmentalfactors. The original site islocated in a place withdense population, whichhas caused many disputes.However, the final site willstill be in Guangdongprovince, the economicpowerhouse of southernChina. KPC hopes that therefinery can be put into op-eration in 2013-14, but theproject is subject to the final
approval of Chinese author-ities. According to the plan-ning for the petrochemicalindustry of Guangdong, theprovince will build fivepetrochemical bases, in-cluding the construction offive new refineries or ex-pansion projects, five ethy-lene projects and a largequantity of downstreamchemical projects duringthe Eleventh Five-Year Plan,2006-2010. Among the fiverefineries, Sinopec hasthree expansion projects,namely the GuangzhouPetrochemical ExpansionProject, Maomen Petro-chemical Expansion Projectand Zhanjiang Petrochemi-cal Expansion Project.
Facts and FiguresName: Baofeng Steel Industrial Co., Ltd Founded: 2002Main Products: Stainless steel seamless tubes & pipesSize range: 6-630mm in diameterKey applications: oil& gas, petrochemical, aerospace,
pharmaceutical, food & beverage, pulp & paper and construction
Capacity: 24,000 tons/yearEmployees: 1078
Did you know that …Baofeng Steel Industrial Co., Ltd has rapidly developed sinceits establishment in Wenzhou, China in 2002. It has become alarge stainless steel manufacturer which integrates melting,processing, marketing and technological development ofstainless steel. Today Baofeng Steel occupies more than134,000 square meters and employs 1,078 people in six affi-liated production factories including Baofeng Special SteelFactory, Wenzhou Xinbao Metal Used and Scrap Recycle Co.,Ltd, Baofeng Hole Punching Factory, Guangzhou Foshan Man-hua Recycle Co., Ltd, Baofeng Seamless Pipe Factory, and Ba-ofeng Welded Pipe Factory.
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