Bank of China provides $21.23 million buyer’s credit loan for Huludao Steel Pipe Factory Construction Project

In April 2014, the Brunei Economic Development Board (BEDB) signed a land lease agreement with Huludao City Steel Pipe Industrial Co., Ltd. — a private Chinese enterprise — for a $50 million investment project to develop a welded rounding carbon steel pipe manufacturing facility (Project ID# 38214). Then, in March 2015, the Liaoning Branch of Bank of China and Huludao (Brunei) Steel Co., Ltd. (葫芦岛（文莱）钢铁有限公) — a special purpose vehicle and and wholly owned subsidiary of Huludao City Steel Pipe Industrial Co., Ltd. — signed an $21.23 million buyer’s credit loan for the Huludao Steel Pipe Factory Construction Project. The borrowing terms of the loan are unknown. However, it is known that Sinosure provided buyer’s credit insurance. The purpose of the project was to construct a steel pipe factory in Salambigar Industrial Park with the capacity to manufacture 100,000 tons of welded rounding carbon steel pipes (for application in the oil and gas as well as the construction industries with an export value of $1,000 million per annum). The project was expected to create 300 jobs and bring more business opportunities to local transportation, logistics and other industries. Construction began in June 2015 and the factory was put into operation on October 10, 2017.

Additional details

1. This project is also known as the Steel Pipe Production Line Equipment Project and the Huludao Steel Pipe Plant Project. The Chinese project title is 文莱钢管生产线设备项目 or 葫芦岛（文莱）钢铁公司OCTG焊管项目. 2. Huludao City Steel Pipe Industrial Co., Ltd. is a market leader in the field of carbon steel pipe since 1993 and its products are exported to 62 countries around the world.

Number of official sources

8

Number of total sources

15