Tenaris Baogang (Baotou) Steel Pipe Co was officially founded in Baotou, North China's Inner Mongolia autonomous region on May 13, co-funded by Tenaris and Baogang Group with a registered capital of $32.6 million, according to Baotou Daily.

Under the agreement, Tenaris will own 60 percent of shares in the new joint-venture company, while Baogang Group will hold the remaining 40 percent.

The agreement marks the start of construction of the premium connection threading facility in Baotou, which will be equipped with industry-leading technology and equipment.

The new plant will cover an area of approximately 30,000 square meters. It is expected to commence operations by the end of 2021.

After the project is completed, it will be able to produce 220,000 oil and gas drills weighing 70,000 metric tons using high-performance special tubing and casing products, with an annual output value of about 200 million yuan ($31.02 million), and a domestic market share of about 10 percent.