(20June 2012 – Hong Kong) Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited ("
Chu Kong Pipe", together with its subsidiaries, the "Group"),the largest manufacturer and exporter of large longitudinal welded steel pipes in China, announce that Panyu Chu Kong Steel Pipe Co Ltd ("PCKSP"), a wholly owned subsidiary of the Group has signed a sales contract of more than RMB530 million with ShaanXi Coal Industy Joint Stock Co Ltd for the Shenwei Coal Slurry Project. PCKSP shall deliver in aggregate approximately 71,700 tonnes of longitudinal submerged arc welded ("LSAW") steel pipes (accounting for around 70% of the total project).Shenwei Coal Slurry Project is the longest and largest coal slurry pipeline in PRC. The total length of this coal slurry pipeline is estimated to be 748km. Annual capacity for transmitting coal is 10million tonnes. This pipeline is the first long distance transportation of coal slurry in PRC. This is another remarkable growth for construction of coal slurry pipeline. This also further confirms that pipeline is the most convenient, environmental friendly and economical way of transmission.
Mr. Chen Chang, Chairman of the Group, comments, "it is widely known that the coal slurry pipeline is the safest and reliable way to transfer coal in large scale. Shenwei Coal Slurry Projectis being well-recognized with its high energy efficient and environmental friendly. We are pleased to have our contribution in this project with our advanced technology, high quality and diversified product range. The sales contract will secure a stable source of income to the Group. It is also expected that the securing of the sales contract would bring forth new business opportunities for the Group for sustainable growth while reinforcing the Company’s position as a leading manufacturer of high quality LSAW Steel Pipes products in the PRC. In addition, the Group’s products can be strategically diversified into other uses after entering into the Shenwei Coal Slurry Project.
About Chu Kong Pipe
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited is the largest manufacturer and exporter of longitudinal welded steel pipes in China. Our steel pipes are mainly for energy transmission that includes oil and gas transmission pipelines, deep sea pipelines, city gas networks, petrochemicals, mining and infrastructure.
The Group’s production bases are located inPanyu, Zhuhai, Jiangyin, Lianyungang (trial operation) and Saudi Arabia (under construction). The Group has 4 LSAW and 1 ERW production lines with annual production capacity of 1,450,000 tonnes as at 31 December 2011.It’s expected that the Group would have 6 LSAW, 1 SSAW and 1 ERW production lines with increasing annual production capacity up to 2,410,000tonnes as at 31 December 2012.
Chu Kong Pipe is the industry pioneer, strong in research and development with 50 registered utility patents and 5 registered invention patents, and has a long standing international and nationwide track record. The Group is the first and only steel pipe manufacturer in China to develop deep sea welded steel pipes for use under 1,500m depth. Chu Kong Pipe is the only welded pipe manufacturer in China that has achieved fournational honors and awards, including "Gold Cup Prize for Actual Qualify of Metallurgical Products", "China Well-known Trademark", "National-recognised Enterprise Technology Centre"and "High and New Technology Enterprise", and is the main drafter of the national standard for welded steel pipes.