Construction of the oil pipe production line in Karamay, northwestern China will begin early 2011. Karamay city government, Xinjiang Oilfield Company in China National Petroleum Corporation and Baoji Petroleum Steel Pipe Co. Ltd. signed a framework agreement for the oil pipe production line project. The total investment is USD 51.98 million. The project consists of a 1626mm diameter spiral pre-finishing welded pipe production line as well as an inside outside anti-corrosion coating line. Upon completion the line will produce 508mm to 1620mm large diameter spiral welded pipe with a yearly output capacity of 120,000mt.