The global steel industry is experiencing " ice and fire."-a contradictory situation. On one hand, a steep decline in demand and significant price fluctuations have plunged many leading companies into a winter of hardship. On the other hand, seamless steel pipes, known for their high strength and pressure resistance, are seeing robust market demand. Faced with this market situation, Hengyang Steel Group, the industrial leader in Hengyang and a key player in the advanced steel materials supply chain, has continued to deepen its product mix adjustment, transitioning toward specialty steel production and achieving steady growth against the odds.

As the old year gives way to the new, the dawn of 2025 heralds a resounding "good news" in investment for Hengyang Steel Pipe (Henggang)—a 7.8 billion yuan project to establish the world's first and largest advanced continuous rolling pipe production line for large-diameter pipes.

This significant investment has sent ripples across the industry. What considerations lie behind Henggang's bold move? What specific implementations does the project entail? And what implications does it hold for Hunan's ambition to become a hub for advanced manufacturing and Hengyang's strategy to anchor its development in manufacturing?

Previously, Henggang's manufacturing prowess has been integral to numerous national megaprojects, from deep-earth drilling to ice extraction in the South China Sea, and the construction of colossal structures. As a partner to China's "three oil giants," "five major boiler manufacturers," and "three machinery giants," Henggang is a key supplier to the world's top oil companies. The company has developed 19 critical core technologies and set 21 world and national records in the steel pipe sector, earning the China Industry Award, the highest honor in the country's industrial sector.

"Only by maintaining a leading position can we secure international discourse power. To realize our grand vision of becoming a world-class specialized seamless steel pipe enterprise, we are focusing our efforts on the development and industrial application of extra-large diameter steel pipe continuous rolling technology, positioning ourselves strategically in the market to seize opportunities," said Li Hongzhong, Director of the Production Management Center at Henggang, in an interview. "Previously, we produced extra-large diameter seamless steel pipes through secondary or multiple hot-expansion processes. With the new production line, these pipes can be formed in a single process, ensuring better product quality stability, improving production efficiency, and saving on energy, logistics, and time costs. Thus, this transformation and upgrade are imperative."

According to reports, Henggang's project for the industrialization and sustainable development of extra-large diameter continuous rolling pipes is being newly constructed within the Henggang plant area. It primarily involves the establishment of a hot-rolled seamless steel pipe continuous rolling unit capable of producing pipes with outer diameters ranging from 323.8 to 610 millimeters and wall thicknesses from 7.2 to 65 millimeters. The project includes processes such as billet preparation, hot rolling, and finishing, along with the necessary equipment. It also includes a 350,000-ton per year offline heat treatment line, the construction of factory buildings for the project, and the construction and renovation of public auxiliary facilities.

This extra-large diameter unit is the world's first and largest three-roll limit-motion continuous rolling pipe unit. Henggang has conducted technical feasibility analyses with various manufacturers and design institutes, organizing thorough discussions on the project's technology with companies such as SMS, Danieli, CISDI, and Taiyuan Heavy Industry. The design fully embodies the unit's capability to handle larger diameters, a wider range of rolling sizes, and more advanced processes.

Industry professionals analyze that the project is expected to add approximately 5.1 billion yuan to the regional annual GDP and generate an additional 507.7 million yuan in annual taxes. The project will further enhance Henggang's role as a leading enterprise in Hengyang's steel pipe and deep processing industry chain, injecting development momentum into local companies such as Keying, Hongyu, and Hongling, and attracting more mid- and downstream steel pipe processing enterprises in hot expansion and engineering machinery to invest locally. As a landmark project for the on-site multiplication and transformation and upgrading of traditional industries in the province, once completed, it will propel Henggang to become the world's largest single-site seamless steel pipe producer and a domestic base for mid-to-high-end seamless steel pipe production. This will provide robust support for establishing a global steel pipe capital and inject strong momentum into Hunan's efforts to build an advanced manufacturing hub and Hengyang's strategy to anchor its development in manufacturing.