en.Wedoany.com Reported - On June 1, China's listed company Tianjin Youfa Steel Pipe Group Co., Ltd. (referred to as "Youfa Group", stock code: 601686) signed a strategic acquisition agreement with Cangzhou Longtaidi Pipeline Technology Co., Ltd. (referred to as "Longtaidi"). According to the agreement, Youfa Group will acquire a 53% stake in Longtaidi, and upon completion of the transaction, Longtaidi will become its controlled subsidiary. This acquisition aims to enhance Youfa Group's product matrix in the high value-added pipe sector and accelerate its layout in marine engineering, energy pipelines, and overseas oil and gas pipeline businesses.
Youfa Group is a leading welded steel pipe manufacturer in China. It has been consecutively listed among China's Top 500 Enterprises since 2006, and its welded steel pipe production and sales volume has ranked first in China for twenty consecutive years. Longtaidi is a national-level "Specialized and New Little Giant" enterprise focusing on the R&D and production of bimetallic composite steel pipes, pipe fittings, and flanges. It is also a manufacturing single champion in Hebei Province and was included in China's national green factory list in 2025. The company masters two mature composite steel pipe production technologies: mechanical cladding and weld overlay cladding, and is simultaneously developing the new process of laser cladding. Its products are mainly used in the petroleum, petrochemical, power, and pipeline network sectors.
According to the agreement, Longtaidi commits to achieving a cumulative net profit of no less than RMB 450 million over the next three years. Youfa Group stated that after the acquisition, it will integrate resources for Longtaidi through six aspects, including supply chain management, brand empowerment, and market channel expansion. The JCOE oil and gas steel pipes produced by Hebei Haiqianwei Steel Pipe Co., Ltd., a subsidiary of Youfa Group, will serve as the base material for composite steel pipes, enhancing Longtaidi's industrial chain synergy advantages. Currently, Longtaidi's products are sold to 53 countries and regions worldwide, with clients including China Oil & Gas Pipeline Network Corporation, China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC), as well as international energy companies such as Shell, ExxonMobil, BP, and Abu Dhabi National Oil Company (ADNOC).
Upon completion of this acquisition, Youfa Group's product line will expand into high value-added fields such as bimetallic composite pipes and corrosion-resistant special pipes, filling its gap in this technological track. This will extend Youfa Group from its traditional welded steel pipe business to three core business directions: oil and gas specialty pipes and overseas production capacity layout. This article is compiled by Wedoany.com. Any AI citations must indicate the source "Wedoany.com". For any copyright issues or other problems, please notify us promptly. This site will make modifications or deletions accordingly. Email: news@wedoany.com
