The Rise of a Steel Pipe Giant by the Red Flag Canal

Strategic Transformation Amid Sparks of Steel:

On February 3, 2025, the west side of Fengbao Steel Pipe’s Plant 89 in Linzhou, Henan, was adorned with red flags and shovels wrapped in red silk, neatly arranged around the foundation stone. With a resounding announcement by Sun Jianduo, Secretary of the Linzhou Municipal Party Committee, the groundbreaking ceremony for the “Special Precision Steel Pipe Project for UltraLarge and UltraThick HighEnd Equipment Manufacturing” officially commenced. With a total investment of 1.2 billion yuan, the event was witnessed by over 400 representatives from government and enterprises—marking the sounding of Fengbao’s charge toward becoming a globally toptier steel pipe manufacturer.

At the midyear review meeting on July 22, 2025, General Manager Li Jingmin delivered a report titled *”Developing HighEnd Products in the Industrial Chain, Accelerating DigitalIntelligent Transformation, and Striving to Build a Globally Competitive Renowned Pipe Enterprise.”* In it, he issued a clear strategic directive: Fengbao must shift from “steel smelting to material innovation,” focusing on “new steel pipe materials and specialized applications,” and pivot its product structure toward functional materials for new applications and meeting customers’ unique needs.

Chairman Li Guangyuan fully endorsed this strategic direction, emphasizing the need to “learn from successful enterprises, transform traditional mindsets, and elevate the steel business to worldclass standards.” By then, Fengbao had already spent over two decades establishing itself in the steel pipe industry, building considerable influence. However, facing the dual challenges of the new energy revolution’s impact on traditional energy sectors and the sweeping tide of digitalization, Li Guangyuan recognized with clarity that transformation was not a choice—it was a matter of survival.

1.2 Billion Yuan Investment Fuels Seamless Steel Pipe Innovation:

Leveraging its multidisciplinary system integration expertise and core equipment manufacturing capabilities in steel engineering, Fengbao independently developed continuous rolling pipe production technology and core equipment. It became the first in the world to successfully apply a threeroll, sixstand hot continuous rolling mill to smalldiameter seamless steel pipe production, utilizing the world’s most advanced sidechanging threeroll, sixstand continuous rolling mill and a 28stand stretch reducer.

By innovating production processes, Fengbao achieved “hotrolling replacing coldrolling” for smalldiameter seamless steel pipes, reducing energy consumption, metal waste, and environmental pollution associated with traditional coldrolling/colddrawing methods. This laid the foundation and provided technical assurance for widespread domestic adoption, setting a benchmark for the steel industry’s transition toward green and intelligent manufacturing.

The newly launched 1.2billionyuan highend precision steel pipe project is the core of Fengbao’s transformation strategy. With digitalization and intelligence as its foundational genes, the project deeply integrates information technology with manufacturing, aiming to revolutionize seamless steel pipe production and management.

Targeting industry pain points, the project seeks to break through the limitations of traditional steel pipe production methods, focusing on breakthroughs in largediameter thinwall and ultrathickwall seamless steel pipe technologies to meet the demands of specialized sectors like nuclear power and aerospace. Upon completion, Fengbao’s deepprocessing capacity will surge from current levels to over 60%, and its hotrolled seamless steel pipe production capacity will historically exceed 2 million tons. This leap is monumental for Fengbao—not only filling the gap in largediameter seamless pipe demand but also serving as the core engine for its global push into specialized pipe markets.

From Steel Smelting to Material Innovation:

In the traditional steel industry, Fengbao’s scitech innovation strategy stands out sharply:

Early January: Fengbao’s products were successfully included in the National Strategic Emerging Industries Catalog, designating the company as a strategic emerging industry enterprise.

February: With the launch of the ultralarge, ultrathick precision highend equipment steel pipe project, Fengbao took a critical step toward becoming the world’s most competitive specialized seamless pipe provider.

Early March: Approved to establish a national postdoctoral research workstation.

MidApril: Fengbao’s 5G smart factory project was shortlisted in Henan Province’s tentative approval list.

May: Fengbao filed a patent for seamless pipe nondestructive ultrasonic testing equipment and methods, significantly improving detection accuracy and efficiency. It also became a preferred supplier for CNOOC’s oil well casings, completing its “puzzle” of supply partnerships with China’s “Big Four” oil giants—CNPC, Sinopec, CNOOC, and Yanchang Petroleum.

June: Linzhou’s “4+2” work mechanism onsite meeting was held at Fengbao’s 860 project department. Henan Vice Governor Li Tao visited Fengbao, encouraging the company to seize development opportunities, strengthen scitech innovation, cultivate new productive forces, and enhance market competitiveness and influence.

July 9: Fengbao partnered with the University of Science and Technology Beijing and Northeastern University for scitech innovation collaboration and a joint postdoctoral workstation, focusing on the strategic direction of “new steel materials and specialized pipe applications” to create a hub for original technology and independent innovation, advancing the shift from “steel smelting to material innovation.”

Setting a Benchmark for Green and Intelligent Manufacturing Transformation:

As a nationally influential player in seamless pipe manufacturing, Fengbao has built a comprehensive innovation system covering “R&Dproductionapplication” in specialized seamless pipes, consistently ranking among China’s top 500 private manufacturers. Beyond joint labs with prestigious universities like USTB and Shanghai University, Fengbao has achieved breakthroughs in steel material modification and extremecondition pipe R&D.

Today, Fengbao’s products are used in machinery, nuclear power, deepsea oil extraction, and other specialized scenarios, with partnerships spanning China’s three state oil giants and Yanchang Oilfield. Its overseas market covers over 30 countries across four continents.

Cuttingedge achievements speak volumes:

“Key Metallurgical Technology for HighQuality, LowCost 20Mn2 Steel for Axle Pipes” won the Henan Provincial SciTech Progress Third Prize.

“R&D and Application of Key Technologies for HighPrecision SmallDiameter ThreeRoll Continuous Rolling Mills” won the Metallurgical SciTech Second Prize.

“Development and Application of Φ114 Precision ThreeRoll Hot Rolling Mill Systems” won the Machinery Industry SciTech Second Prize.

Through relentless innovation, Fengbao is not just transforming itself—it’s reshaping the future of the steel pipe industry.