Nippon Steel to Launch X120 Grade UO Pipe

Nippon Steel announced on Monday the firm will start mass production of X120 grade high strength steel UO pipe with multiple properties in 2008 for the first time in the world. The firm adds relating facilities including forming, welding and equipments for quality guarantee at UO pipe plant in Kimitsu works for around 4 billion yen. The firm tries to establish integrated production system of high strength UO pipe ahead of competitors after the 25 billion yen investment for steel making and controlled cooling process of plate mill at Kimitsu to improve quality of plate. Nippon Steel started the joint effort with Exxon Mobil of USA in 1996 to develop X120 grade high strength pipe. Nippon Steel completed the development of X100 and X120 class strength products with multiple properties including low temperature toughness and higher formability after the firm built demonstration line in Canada in 2004. The firm keeps full capacity operation mainly for X70 grade products at UO pipe plant with annual 500,000 tonnes of output capacity in Kimitsu. The firm will start mass production of X120 grade products in March 2008 to serve major pipe line projects in the world. The firm expects world UO pipe demand for pipeline will increase to 7.5 million tonnes around 2015 from current 4 million tonnes. Line pipe demand increases mainly for gas transportation under growing worldwide energy demand and natural gas development. UO pipe users seek higher strength and more multiple property products along with downsizing needs by using high strength pipe when the users develop resources with severer conditions in colder temperature and deeper ocean.