Changbao Oman Oil Pipe Company, the first Chinese factory in Sohar Freezone, held its inauguration on Monday. The ceremony was well attended, with the participation of over 60 guests, which included officials from the Ministry of Oil and Gas (MoG), Ministry of Commerce and Industry (MoCI) and Royal Oman Police (ROP), delegates from Sohar Port and Freezone, oil companies including PDO, and tubular distributors, amongst many others.

Jiangsu Changbao Steel Tube Company, the parent company of Changbao Oman Oil Pipe Company, is one of the major manufacturers in China of oil country tubular goods (OCTG) and boiler pipes.

The new $20 million facility, located in the Sohar Freezone, is spread over a project area of 21,200 square metres.

The facility is designed for producing tubing products, and equipped with cutting-edge computer numerical control (CNC) machines, as well as hydraulic testing machines, with an annual capacity of 50,000 tonnes.

 

The new factory is working with a variety of agencies and industry institutes for approvals and certifications, including the American Petroleum Institute. It is expected to begin full-scale production in early 2018, paving the way for a substantial amount of tubular goods that could be made locally in Oman.

In the light of the "One Belt One Road" initiative put forward by the Chinese government as a state strategy, Changbao is proactively seeking related opportunities. With a stable market base in Oman and other Gulf Cooperation Council (GCC) countries, Changbao selected Oman as the sight for building its first overseas project, which will effectively shorten the distance between Chinese businesses and their Middle East customers.

Changbao has been supplying tubular products to more than 40 countries and regions, including Oman and Kuwait in the Middle East, as well as markets in Oceania, South America, Russia and Southeast Asia.

The new facility in Sohar Freezone will follow its business philosophy of ‘sustainable, harmonious and win-win’ development, supply more reliable and high-quality products, and provide more responsive services to its customers in Oman and the GCC.

By building a strong corporate brand and competing proactively in the international market, Changbao seeks to create a more balanced business model.

Source:Timesofoman