A MANUFACTURER of high-performance pipe coatings in the region has once again beaten Chinese rivals on price to win a major contract in China.

E Wood Ltd, in Northallerton, North Yorkshire, last night signed a £717,000 contract with Baoji Steel to supply specialist coatings for the first phase of a gas pipeline project.

Baoji Steel is one of the largest pipe companies in China.

E Wood hopes to clinch the work for the second and third phases of the project, which will see 3,500kms of gas pipeline manufactured in China before being sent to India.

Managing director Chris McDonnell said: "The Chinese were favourite to win the contract to supply the pipe for the East-West gas pipeline in India.

"Baoji Steel then put the coatings work out to tender. We put in our bid against competition from two rival Chinese companies.

"We won the contract on price, quality and service, which indicates our strength in the overseas market."

Mr McDonnell was delighted that his company had fended off rivals despite being so far away.

He said: "We all think about China in terms of low-cost manufacturing and yet we got this deal because of the price we could offer, even though we have to ship the products 10,000 miles to China."

E Wood, which has a turnover of about £25m, supplies its gas pipe coating to countries around the world.

The product is sprayed on pipes to protect them during transport, storage and construction.

The coating also improves the efficiency of gas travelling through the pipes by about ten per cent.

Last year, the firm clinched a £2.5m contract to supply protective coating to line 4,200km of pipes carrying natural gas across China.

The company outbid three Chinese competitors, as well as suppliers from Germany and the US, again winning the deal by being able to offer the best price.

"It is becoming increasingly difficult for companies here to sell to China because the Chinese are continually improving their knowledge and techniques," said Mr McDonnell.

"So this is a major contract win for us and we hope that it will put us in a strong position to win the work for the second and third phases of the project."

In November, E Wood announced that it had signed a seven-figure contract with Northumbrian Water. The deal will see the company supply a coating to reline the utility company's water pipes across the region.