Project for the production of special welding materials and auto components signed and implemented in Tongzhou Bay
2026-08-21
On January 8, 2026, the signing ceremony of the agreement on the project to increase investment and expand the production of special welding materials and automotive components of the Bobao company was successfully held. The total investment in this project is 500 million yuan, the planned construction area is about 50 mu. The project will be located in the central zone of the Tongzhouwan Coastal Green New Materials Industrial Park, adjacent to the port transportation railway and the Beishugand Expressway. Thanks to favorable port resources and developed infrastructure, the project will be able to ensure efficient logistics of raw materials and finished products, creating a solid basis for large-scale production.
The project investor is Shanghai Bobao Welding Equipment LLC, a national enterprise in the “specialized, precise, unique and innovative” category, registered on the Chinese New Third Board. The company has been working in the field of special welding materials for many years, has a number of key technological patents and a modern research and development system. In the high-tech materials segments, including welding consumables for stainless steel and titanium alloys, the company has significant technological advantages and high market competitiveness. Its products undergo stringent quality certification tests and are widely used in strategically important new industries such as lightweight automotive manufacturing, nuclear power equipment construction, high-precision machining of aerospace parts, corrosion-resistant chemical equipment and other areas. The sales market covers many provinces of China and certain foreign regions.
From the point of view of the key value of the project, this increase in investment and expansion of production is not just an increase in production capacity, but a strategic decision that exactly corresponds to the trends in the structural growth of the industry. Currently, China's specialty welding consumables industry is entering a period of transition to high-end products. The market size is expected to increase from RMB 38.5 billion to RMB 62 billion between 2025 and 2030, with high-tech product categories such as nickel-based alloy welding consumables for nuclear power and specialty welding wires for electric vehicles being the main growth areas.
Bobao's project focuses on the production of products such as stainless steel solid welding wire, titanium material welding wire, high-quality flux-cored wire and other special welding materials, which fully meets the current market demand. Once the project is put into operation, it will make up for the shortage of production capacity of high-tech special welding materials in the region and will help reduce dependence on imports of certain types of high-end products. After reaching full capacity, it is expected to achieve an annual output of 600 million yuan and an annual tax revenue of more than 30 million yuan. At the same time, the project will stimulate the development of related industries, including materials supply, precision processing, logistics and other areas, giving new impetus to the formation of a green metal materials industrial cluster in Tongzhouwan.
Chairman of Shanghai Bobao Group Zhou Xinchun presented in detail the future development plan of the enterprise. He noted that investing in Tongzhouwan is the group's strategic choice to expand its presence in the Yangtze River Delta region and enter the high-end product market. The project to increase investment and expand production will be implemented in three stages.
The first stage is planned to be completed and put into operation by the end of 2027. The focus will be on building an intelligent production workshop, introducing automated production lines and intelligent quality control systems to organize large-scale production of high-quality flux-cored welding wire and welding wire for titanium materials. After reaching its design capacity, the enterprise will be able to produce up to 20 thousand tons of high-quality welding materials per year.
The second phase will focus on technological innovation. It is planned to create a corporate research center and develop cooperation with universities and research institutes within the framework of the “production-education-research” model. The main areas of research will be smart welding consumables (including flux-cored welding wires with IoT tracking), environmentally friendly low-smoke welding consumables and other advanced technologies. It is planned to increase the share of investment in research and development to more than 5%, which will contribute to the process of import substitution in the industry.
The third stage involves expanding the direction of welding components for automotive parts and creating a closed industrial chain “research and development of materials - production - comprehensive services”. At the same time, thanks to the advantages of Tongzhouport, the company plans to expand exports to Southeast Asian markets under the RCEP agreement. Once the project is fully completed, the company aims to achieve an annual production volume of more than 1 billion yuan.
