Alleima inaugurates tube production facility - expanding for future growth in China

This investment coincides with 40 years of Alleima presence in China and marks an important milestone in supporting the growing demand for high-quality tubular products for industries like chemical and petrochemical, hydrogen, pulp and paper, and medical. With this investment, Alleima will double its production capacity, broaden its product range, employ additional employees and enable shorter lead times for customers across China and Asia.

Alleima, a global manufacturer of high value-added products in advanced stainless steels, traces its origins date back to 1862 in Sandviken, Sweden. The company was among the first Swedish industrial companies to establish operations in China. Since 1985, Alleima has continued its expansion in China. This investment includes a 12 500 m² cold-finishing mill, it is doubling Alleima’s production capacity in China and make it possible to introduce premium portfolio of application tubing products.

“With this investment, we are meeting a strong growing market in China. By adding capacity and broadening our portfolio, we are strengthening our ability to deliver our products locally in Asia. We are a leader in materials technology, and our focus is to serve the most demanding industries with high-quality tubular products. This supports our customers’ needs for efficiency, reliability, and sustainability - key pillars of our long-term growth strategy,” says Göran Björkman, President and CEO of Alleima,” says Göran Björkman, President and CEO of Alleima.

In 2023, Alleima announced a major investment of SEK 255 million (RMB 193 million), in a facility in China to meet the growing demand from sectors like chemical and petrochemical, hydrogen, pulp and paper, and medical. The expanded facility will now manufacture high-performance tubular products, such as heat exchanger tubes as well as high-temperature, composite, and hydrogen refuelling tubes previously imported. This investment broadens Alleima’s advanced tubular portfolio in Asia and strengthens its ability to serve customers locally, while operating under sustainable manufacturing principles that enhance process efficiency and reduce environmental impact.

“China is one of our most important growth markets. By expanding our local manufacturing capabilities, we shorten lead times, enhance supply reliability and strengthen collaboration with our customers in China. This investment underscores our long-term commitment to the Chinese market, while positioning Zhenjiang as a strategic hub with the potential to serve the broader Asia region as well. We have had an impressive development in the Asian region with strong development of revenues in the chemical and petrochemical segment over the last 7 years with a compound annual growth rate of approximately 20%,” says Carl von Schantz, President of the Tube division.

With the new investment Alleima expands the product offerings and capacity for composite tubes, high-temperature tubing, heat exchanger tubes, hydrogen tubing (high-pressure tubes) and cold worked pipes. The new facility will be solar powered in line with Alleima Zhenjiang Green Factory certified award, offered by Jiangsu Province.

“Over four decades, Alleima in China has evolved from an importer of products to a world-class local producer of advanced material solutions. The new tube mill, equipped with world-class machinery designed by Alleima, reflects our advanced manufacturing expertise built over 160 years of global experience and 40 years of local innovation. It extends our cold-worked tube range (6–115 mm OD) to meet growing demand in the most demanding industrial environments. Together with our facilities across APAC, this investment strengthens our regional manufacturing base bringing us closer to customers, ensuring supply reliability, and enabling them to operate more efficiently and sustainably,” says Sharath Satish, President of Alleima Tube division in the Asia-Pacific (APAC) region.

Decades of growth in China local production

• 2008 – Groundbreaking for the Zhenjiang site.
• 2010 – First tube successfully delivered.
• 2013 – New R&D center investment approved.
• 2019 – Launch of new coil tube production line.
• 2025 – Launch of Phase II and celebration of 40 years in China.

Read the article online at: https://www.worldpipelines.com/business-news/25112025/alleima-inaugurates-tube-production-facility--expanding-for-future-growth-in-china/