The state-owned Ukreximbank (Kyiv) has opened a long-term credit limit for Centravis Production Ukraine, part of Centravis Ltd., in the amount of EUR 35 million, which is equivalent to UAH 1.177 billion.
According to Centravis press release published on Thursday, March 4, the company is going to use these funds to produce new types of seamless pipes, introduce environmental and energy-saving technologies and further upgrade the production.
“The bank opened a credit limit of EUR 35 million for five years to maintain the high competitiveness of products in world markets as well as to ensure timely and full implementation of the investment program aimed at developing sales of high value-added products,” Director of Corporate Banking Department (private enterprises) at Ukreximbank Oleksandr Isniuk said, who is quoted by the press service.
In turn, Centravis CFO Alexandre Joseph added that raising funds in Ukreximbank would strengthen the company’s financial stability and would provide the opportunity to annually invest at least EUR 7 million in the development and output of new products.
“Since we work with world top brands, we need to be proactive and maintain focus on efficiency and customer service. We believe that cooperation with Ukreximbank is a classic win-win story for Ukraine. Our company exports over 98% of its products. The foreign exchange earnings amount to about EUR 150 million. This helps to improve the foreign trade balance of Ukraine and strengthen the ‘made in Ukraine’ presence in the world market,” Joseph said.
The press release recalled that despite the tailspin due to the coronavirus pandemic, Centravis maintained a stable position among the world’s best manufacturers of seamless pipes over 2020. The production volume amounted to 19,050 tonnes. The company doubled its EBITDA compared to 2019 — to EUR 14 million.
Centravis is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnipropetrovsk region).
Centravis is one of the world’s top ten players, supplies products to ThyssenKrupp, BMW, Alstom, Linde, Samsung, Volkswagen and other companies. The company employs over 1,400 employees.
Ukreximbank, the sole owner of which is the state, was established in 1992. According to the National Bank of Ukraine, as of January 1, 2021, in terms of total assets (UAH 246.877 billion), Ukreximbank ranked third among 73 banks operating in the country.