PJSC Centravis Production Ukraine (Centravis Production Ukraine), part of the holding Centravis Ltd., suspended the production process last week due to shelling by Russian invaders of the city of Nikopol, Dnepropetrovsk region, where the company’s assets are located.
“The Russians continue their terror against the civilian population of Ukraine, the shelling of civilian infrastructure. Nikopol was no exception. The employees of Centravis were not injured. The production equipment was not damaged,” Chief Sales Officer (CSO) Artem Atanasov said in a letter to customers in Friday.
According to him, at the time of the escalation, the administration of Centravis took additional security measures to protect employees and their families.
“We continue to ship products. The main production was temporarily stopped this week, but we plan to restart it on Monday, July 25,” the sales director stated.
At the same time, he noted that the supply of blanks to the enterprise is stable. “We continue to accept orders, there is an opportunity to place orders for September and beyond,” Atanasov said.
He added that the logistics team is actively working and constantly looking for better and safer ways to deliver finished products. Sales offices around the world in Essen, Milan, Krakow, Lugano, Houston and Dubai are open, financial and administrative customer support departments also continue to work.
Centravis is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnepropetrovsk region). Included in the top 10 global players, supplies pipes to more than 70 countries from different regions, in particular to Thyssenkrupp, Buhlmann, BMW, Alstom, Linde, Samsung, Volkswagen.
Before the Russian aggression, more than 1,400 people worked at the enterprise.
Holding Centravis Ltd. was created on the basis of CJSC “Nikopol Stainless Pipe Plant”, service and trading companies LLC “Production and Commercial Enterprise “UVIS”. Its shareholders are members of the Atanasov family.
Owned by Centravis Ltd. 100% of the shares of PJSC “Centravis Production Ukraine” is located.
Dniprospetsstal electrometallurgical plant (Zaporizhia) has begun a gradual launch of production, including for the purpose of supplying stainless steel to PrJSC Centravis Production Ukraine, which is part of holding Centravis Ltd.
Chief Sales Officer (CSO) Artem Atanasov said in a letter to Centravis customers that the company is experiencing a positive trend in the supply of pipe billets for production.
“Dniprospetsstal, our main billet supplier, is gradually launching production, and in the near future we expect stable supply volumes,” Atanasov stated.
According to him, Centravis is operating normally, both in hot and cold shops. At the same time, in the hot production, all actual performance indicators are higher than planned, in the cold shop, several lines operate at the level of stable operation before the war.
The sales director recalled that the plant began to offer products and take orders.
“Your continued support (from customers) is extremely important to us at this stage. Buying pipes from Centravis means that you support the restart of the Ukrainian economy, which is now more important than ever. Our logistics team is actively working and constantly looking for better and safer ways for delivery of finished products,” Atanasov emphasized, adding that the company is actively preparing for participation in the Tube&Wire exhibition, which will be held in Dusseldorf on June 20-24.
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). It is included in the top 10 world players. Before the Russian aggression, more than 1,400 people worked at the enterprise.
PJSC Centravis Production Ukraine (Centravis Production Ukraine), part of the holding Centravis Ltd., has increased the production of pipes due to improved supplies of billets.
“The situation in production has slightly improved compared to last week. The extrusion line is running, the time for repairs has been reduced, as there is a positive trend in the receipt of the billet. The situation in the cold shop is also stable. Some of the mills have been launched due to the availability of billets, and the operation of two annealing furnaces has been resumed” , – stated in a letter from Chief Sales Officer (CSO) Artem Atanasov to Centravis customers on Friday.
According to him, the emphasis in production is on the production of pipes for instrumentation and automotive industry, but also heat exchange pipes and pipes for general purposes. There are no deviations in quality and metal consumption.
At the same time, it is noted that the logistics team of the company is constantly looking for the best and safest ways to deliver finished products to consumers. Members of the Board of Directors Yuriy Atanasov, Andrey Krasyuk, Oleksandr Joseph, Artem Atanasov remain in Ukraine and continue to work. Sales offices of “Centravis” around the world in Essen, Milan, Krakow, Lugano, Houston and Dubai are also open, financial and administrative departments, customer support work.
“We are pleased to inform you that the current EU protective measures against Ukraine will soon be lifted, which will allow Centravis to export its tubular products to the EU without paying a 25% protective duty indefinitely. The EU regulation in this regard will be officially approved in the near future and we expect it to be published in the Official Journal during May 2022,” Atanasov wrote.
“Centravis” is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnepropetrovsk region). Included in the top 10 world players. Before the Russian aggression, more than 1,400 people worked at the enterprise.
Holding Centravis Ltd. was created on the basis of CJSC “Nikopol Stainless Pipe Plant”, service and trading companies LLC “Production and Commercial Enterprise “UVIS”. Its shareholders are members of the Atanasov family.
Owned by Centravis Ltd. 100% of the shares of PJSC “Centravis Production Ukraine” is located.
PrJSC Centravis Production Ukraine, part of Centravis Ltd., intends to invest EUR 10 million in the renewal of production and expansion of capacities in 2022, as well as in improving energy efficiency, while in 2021 it used EUR4 million of investments, Yuriy Atanasov, the CEO of Centravis, said during an online press conference. According to him, capital investments in 2020 amounted to EUR2 million. “For 2021, it was planned to invest EUR 7.5 million, but used EUR 4 million. We implemented several landmark projects – we were able to launch our own boiler houses to provide steam and heat production, thanks to which gas costs halved. We also invested in the renewal of pickling sites – we are leaving from aggressive technologies, plus a reduction in energy costs. Some of the projects have been transferred to 2022. We also intend to invest in additional capacities,” Atanasov explained.
The company in 2021 received income in the amount of EUR140 million, for 2022 the plan is EUR200 million. At the same time, the CEO specified that the growth in income is mainly due to rising prices.
The top manager pointed to three important factors that took place in 2021: a sharp recovery in the market and a “hysterical” increase in demand.
“Markets have moved into a state of activity very quickly since the end of 2020. And it was difficult – we were not ready for this. The second factor – a sharp unwinding of inflation, rising prices for energy resources, for materials, for our raw materials – there was a catastrophically sharp increase in prices. And we had to take this into account in our work. The third factor is how we work to expand our capacities. We did not use an extensive method, we did not increase hiring of personnel, but went along the path of increasing efficiency. And we are directing investments towards systemic expansion of capacities. This determined our actions last year,” the CEO explained.
The head of the enterprise noted that the company is optimistic about 2022 and the future.
“Centravis strengthened its position as a reliable supplier. And the markets are diversified – Europe, Asia, and the Russian market is less and less,” Atanasov stated.
Centravis is one of the world’s largest manufacturers of seamless stainless pipes, founded in 2000. Its production facilities are located in Nikopol (Dnipropetrovsk region). It is included in the top ten global players. The company employs more than 1,400 people.
PrJSC Centravis Production Ukraine, part of Centravis Ltd., has launched several large-scale programs for the environmental modernization of the enterprise with a total investment of more than UAH 140 million.
According to the company’s press release on Wednesday, the projects include a comprehensive reconstruction of the chemical pipe treatment section, the construction of a reagent treatment system for acid wastewater, as well as the transition to autonomous modular boiler houses.
At the same time, it is noted that care for the environment is part of the Centravis evolutionary path. In this regard, the company has developed and is actively implementing a number of environmental programs that will help reduce the impact on the environment.
One of Centravis’s goals is to eliminate the use of energy-consuming alkaline melt by radically changing the technology of chemical processing of seamless pipes. To this end, the company has entered into a contract for the supply of a new dipping tank, which will allow the introduction of an innovative technology for the chemical treatment of pipes in the near future. The installation of the new tank is scheduled for the first half of 2021.
Also, within the framework of this program, a comprehensive reconstruction of the entire chemical processing section of pipes will be carried out, including a complete repair of the ventilation system. The cost of the entire complex of measures within the framework of this project will amount to more than UAH 70 million.
Another equally important environmental program is the construction of a reagent acid wastewater treatment system. It is planned that the system will be built by 2022, and the project cost will be more than UAH 45 million.
In addition, in 2021, Centravis will switch to autonomous modular boiler houses and abandon the centralized supply of steam and heating, which will make production more energy efficient. At the same time, the company will reduce carbon dioxide emissions by 140 tonnes per month. The expected cost of the project for the construction of modular boiler houses is about UAH 25 million.
“We will be able to complete the bulk of the work under the eco-program by the end of 2021. Centravis will continue to actively invest in environmental programs, since caring for the environment and the health of our employees will remain our focus in a long-term strategy based on an evolutionary path,” the press service said, citing Head of Purchasing at Centravis Tetiana Omelchenko.
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). It is included in the top ten world players. The company employs over 1,400 people.