Faced with overcapacity in the industry and continued downturn in the international and domestic markets, Tianjin Steel Pipe Group Co., Ltd. thoroughly implemented the requirements of the municipal party committee and government, and worked hard against the trend. It took product upgrades, cost control, quality control, and reform efficiency as the starting point to improve its internal strength and comprehensively enhance its core competitiveness. In January this year, the domestic sales volume of seamless steel pipes of the Steel Pipe Group increased by 4.25% year-on-year, and the export shipment volume increased by 22% year-on-year, achieving a good start in January.

The person in charge of the Steel Pipe Group told reporters that with the implementation of the national policy to completely ban the production of "illegal steel" by medium-frequency furnaces and industrial-frequency furnaces and the strengthening of environmental protection requirements, the technical, cost and environmental advantages of the group's three ultra-high power electric arc furnaces are gradually emerging; coupled with the group's close adherence to the market, further improving its cost control capabilities, and realizing the linkage of ironmaking and steelmaking processes while ensuring the smooth operation of blast furnaces, and actively adjusting the furnace input structure to achieve optimal overall cost, with the cost per ton of pipe reduced by 293 yuan, providing cost support for grabbing the market and winning contracts; at the same time, it demanded benefits from the system and mechanism, deepened reforms, compressed management levels, and promoted the flattening of organizations with the tube rolling process as a pilot. The tube rolling process organization was compressed by 52%, and grassroots management personnel were reduced by 32%. New management personnel were entirely selected through open competition, truly realizing the "promotion of the capable and demotion of the mediocre", and stimulating the enthusiasm of the majority of cadres and employees to do things and start businesses. Under the situation that the export volume of seamless steel pipes in the country decreased year-on-year, in 2016, the company successively obtained several large orders for casing of 94,000 tons and 53,000 tons from internationally renowned oil companies, and successfully passed the qualification certification of the largest oil company in Iraq, which provided strong guarantee for the promotion of products in this market and laid a good foundation for optimizing the contract structure and achieving a good start in January this year.