Abstract: Compared with currently-used various types of newly-developed tube-rolling mills, the traditional plug pipe mill fails to produce tubes with quality equal to those produced by the said new type mills. Nevertheless, if pinpointing the existing shortcomings of it, necessary innovation concerning the process and the equipment are conducted, the said plug pipe mill will come to be capable of producing tubes with enough competitiveness. All that described in the article is an analysis of both the existing problems and the advantages of the plug mill as well as the approach to innovation thereof.