Monday, September 10, 2007

P91 Pipe Failures ---->> Band: Made in China Further dig up

Further dig up reveals the following FYI

I have received the following email, to allert of the consequences of greedy / shonky alings in the today market. The e-mail is in relation to the 300MW unit at the Datong Power Station Unit 2, the failure of HP main steam line:
"It is very important that we deal with reputable companies and know the origin of the materials we supply.

The material that failed was supplied by a company in Houston TX, called S.M.A.N.T,who certified it as US pipe when it came from questionable sources in China. These details have been confirmed by the Bechtel QA Manager of Power. Bechtel China has also conducted an investigation and the supply chain is ugly due to the extent of how many agents, brokers, and mills are involved. The Chinese Government has stepped in and has called for a formal
The Chinese Government has also banned Chinese made pipe for use in major power plant critical applications. Thus far there is evidence to support that over 30 plants contain similar or other “fake pipe” all over China."

I wander if anyone did/could read the original Chinese certificates.




Project:                Huadian Datong 2x300MW
Location:               Datong County, Xining City, Qinghai Province, Northwest of China
Design:                 Northwest Electric Power Design Institute (NWEPDI)
Contractor:             Qinghai Power Construction Company
Supervision:            Sichuan Power Supervision Company
TIC:                        2.643 billion RMB (330 million USD)
Construction Schedule:
-          First Concrete:      28 Mar 2004
-          168hr Unit 1:        30 Jun 2006 (27 months planned), 11 Feb 2006 (actual)    
-          168hr Unit 2:        30 Dec 2006 (30 months)
Fire Fatality Accident at same jobsite: 3 Oct 2005, fire occurred in suspending cage @145m while painting 210m height stack;
3 dead
Main Steam Pipe Rupture Accident:  31 Oct 2006 22:10
-          While 300MW Unit 2 Commissioning
-          Designed Parameter of Main Steam Pipe - Pressure: 17.5Mpa, Temp: 541 C-Degree
-          Material: ASTM A335P91
-          Pipe Dimension: 455.62x43.01 mm     (approx. 18" x 1-3/4")
-          Boiler Pressure Testing (Main Steam Pressure: 13.36Mpa, Temp: 483 C-Degree)
-          Longitudinal Rupture: 900mmx40~60mm
-          Distance from start point of rupture to the nearest welding: 2200mm
-          2 dead, 1 severely scalded; several other hurt
-          Faked as product of SMANT from US
Qualified Vendors:
The Four Primary Pipe Systems: Main Steam Pipe, Reheat Pipe (Cold Section), Reheat Pipe (Heat Section) and HP Water Intake Pipe used to be imported by vendors approved by the centralized Ministry of Electric Power:
-         Wyman-Gordon, USA                 

 <> < <>>
-         Mannesmann, German             

   <> < <>>
-          Sumitomo Metals, Japan          

  <> < <>>  (High Pressure Intake Water Pipe)
The government lost control over IPPs after split of Electric Power Ministry, however, the above brands are still recognized as high quality by the industy.
The Counterfeit Chain
Raw Materials of P91, P22 and WB36 - ordered from Fushun Steel Mill, a subsidiary of Northeast Special Steel Group, Fushun City, Liaoning Province
Pipe Piercing and Extending:
-          Chende Pipe Factory, Jiangdu City, Jiansu Province
-          Shengong Heavy Machinery Co Ltd, Taizhou City, Jiangsu Province, obtained license for Fabrication of Boiler & Pressure Vessel (billet only) license just in 15 Jan 2006
Pipe Surface Furnishing
-          Sumitu Special Steel Co Ltd, Taizhou City, Jiansu Province, founded in Mar 2005, a Joint Venture between Shengong Heavy Machinery (23%) and Japan Sumikin Special Steel Co Ltd (77%), not sure is there any relation between the latter with Nippon Steel & Sumikin Stainless Steel Corporation, Japan
-          Sumikin Sancang Special Steel Co Ltd, Tianjing, fabricator of “Hydratic” brand pipe
-          Tianjin Smant Steel Pipe Co Ltd, Tianjing (founded in 24 Nov 2004)
-          Representative Office, Tianjin Smant Steel Pipe Co Ltd, Beijing
-          Representative Office, American Hydratic (Int’l) Inc, Beijing, claimed to be agent of WT in USA
Trader and Dealers
-          China Hydropower Materials Co Ltd, Beijing
-          Huadian Piping Engineering & Tech Co Ltd, Beijing
-          Shangdong Power International Trade Co, Jinan, Shandong Province
-          Nancang,  Tianjin
-          Hudian Jinyuan Pipe Co Ltd, Zhenzhou, Henan Province
-          LuEnergy Storage and Transportation Co, Jinan, Shandong Province   
Fake Brand:
         SMANT, USA
-          Hydratic, USA
-          WT USA
-          Sumito Japan

 -                                  22 June 2006 Main Steam Pipe Rupture occurred during testing/commissioning of Unit 2 of Yi Chuan 3rd Power Plant, Henan Province, where Hydratic Pipe is adapted and claimed to be imported from US.
-                                  An investigation by Henan Power Testing Research Institute, a subsidiary of State Power Grid, identified the so-call Hydratic Pipe and its raw material is all made in China
-                                  Recent investigation on Datong by the same institute also identified the so-call SMANT Pipe imported from USA is also made in China.
-                                  Actually, two and half years ago, Sinopec (China Petroleum Co Ltd) has already noted the numerous quality problems of Hydratic Pipe and issued a notice on 2004-06-07: Re Investigation to Hydratic Pipe.
Authority Action: 
-          It is believed that more than 40 plants have used the Hyrdatic or SMANT pipes.
-          The electric power watchdog, Power Supervision Commission requested an emergency examination on four primary pipes in as-built and under construction plants, which adapt so-called P91 pipe by SMANT from USA.  
-          The cost of bogus pipes is only 40% of those imported and margin from a 2x600MW could be 70 million RMB or 9 million USD.
-          Sometimes they do import some genuine product but only a small portion to cheat inspect and examination. 
-          The trader and dealer actually know the fact of forge and share the interest together with the counterfeiter, however, they pretend as to be deceived once the reality was disclosed.
-          Normally, owners order the critical pipes directly and then lack of strict inspection and examination.
-          For Huadian Datong Power Plant, the pipe trader, Huadian Piping Engineering & Technology Co is actually a related firm to the owner, both of which under the same umbrella of Huadian Group, one of the five major IPPs (State controls most of shares)
-          Plentiful plants built simultaneous with aggressive schedule furnish markets to low cost fake pipes.
-          Legal and administration penalty is too insignificant to deter to counterfeit manufacture. 
Black List
Tianjin SMANT Steel Pipe Co Ltd
Industry Park, Ba Li Tai, Jin Nan District, Tianjin City 
Tel:      86-22-88814785
Fax:     86-22-88814566
Representative Office, Tianjin SMANT Steel Pipe Co Ltd
Rm 602, F6, Modern Baili Tower, 20 South Road, East Third Ring, Chaoyang District, Beijing
Contact:Mr. Wang Xiao Ning (Manager)
Tel: 98-10-67702836
Mobile: 86-13521764045
Contact:Ms. Qian Min (Manager)
Representative Office, American Hydratic (Int’l) Inc
Rm 1310, Fortune Tower B, 3 North Road, East Third Ring, Chaoyang District, Beijing
Contact: Mr Lu BO
Tel: 86 - 10 - 64620153
Fax: 86 - 10 - 64620139
SUMITU Special Steel Co Ltd
Hi-Tech Park, Gaogang District, Taizhou City, Jiangsu Province


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