An oil field drilling tools manufacturing company QinHuangDao China Star Petroleum Equipment Manufacturing Co., Ltd., (Qinhuangdao, a city located in Hebei Province, China) − a joint venture of PetroMaterials Corporation and Beijing Dunhua Petroleum Technology Co., Ltd. − obtained the certificate of the American Petroleum Institute Standards (API Standards) on September 19, 2005. The company immediately began full-scale operations upon the receipt of the certificates.

At present, the company is expected to manufacture 5,000 drill collars annually. Once the heat-treating furnace and friction welding facility are fully running on February 2006, the company will be able to produce 5,000 drill collars and 20,000 drill pipes annually. Total investment is 400 million Yen, and the share ratio is 80% by PMC and the rest 20% by Beijing Dunhua. Profit is expected although it is the first year of operations.