The Ukrainian industrial company Interpipe intends to implement a number of projects in the next three years, taking into account the environmental component in the amount of $100 million, Denys Morozov, the First Deputy Director General of Interpipe, said at the first international forum “Decarbonization of the Steel Industry: a Challenge for Ukraine.”
“If we do not engage in decarbonization, then in the next 20-30 years the climate can be irreversibly changed,” Morozov stated.
According to him, in addition to an economic effect, all these investments have an obligatory environmental component. Among the projects, the top manager highlighted the construction of a wheelset assembly workshop for the EU and U.S. markets, the construction of a new thermal department at Interpipe Niko Tube, and the installation of a new hydraulic press at Interpipe Nyzhniodniprovsky Pipe Rolling Plant. Thanks to the implementation of these projects, both emissions of harmful substances and water consumption will be reduced.
The company will also continue to work on further reducing emissions of CO2 and other harmful substances, waste treatment, and increasing energy efficiency of production.
The expert stated that the issues of climate and decarbonization of the economy are now on the agenda of all the leading countries of the world. The European Union has adopted a special program called Green Deal, according to which the achievement of climate neutrality on the European continent is planned by 2050. The decarbonization of the metallurgical industry plays an important role in it.
According to his presentation, in all developed countries the share of electrometallurgy in total steel production is dominant or significant. Thus, the leaders are the countries of the Middle East (94%), Mexico (83%), the United States (71%) and Turkey (69%). India (56%), Canada (46%) and the European Union (42%) are not far behind.
“In this regard, Ukraine looks like an outspoken outsider – the share of electrometallurgy does not exceed 5%,” Morozov noted, urging to increase it.
The Ukrainian industrial company Interpipe is continuously evolving high-tech exports as well as collaboration with Indian Railways. The cooperation between two companies has already been lasting for more than 25 years.
The company said in a press release that during this time Interpipe supplied both locomotive and passenger wheels to India.
“Now, specifically for Indian Railways, we have developed an improved wheel design for passenger transport in accordance with the operating conditions in India,” the company said in the press release.
Due to the new design, the carrier expects to significantly increase the safety of railway traffic after repairs of passenger rolling stock.
Interpipe NTRP has already started executing this order.
The company expects to supply the Indian national railway operator with a record volume of these wheels. It will help Interpipe to strengthen a long-term relationship with Indian Railways.
Interpipe is global producer of steel pipes and railway wheels, based in Ukraine. The company’s products are marketed in more than 80 countries all around the world via the network of sales offices located in key markets of Ukraine, Europe, North America and the Middle East.
The Ukrainian industrial company Interpipe in January-May this year increased steel production by 10.6% compared to the same period last year, to 368,200 tonnes.
According to the company’s monthly report, for the five months of 2021, pipe production increased by 6.4%, to 206,700 tonnes, the output of railway products decreased by 24.1%, to 68,000 tonnes.
In May, steel smelting amounted to 86,000 tonnes (in April – 89,200 tonnes), pipe production – 51,600 tonnes (48,300 tonnes), railway products – 13,000 tonnes (14,700 tonnes).
It is also reported that pipes in January-May of this year were sold in Europe (29%), the MENA region (25%), Ukraine (17%), the CIS (12%), the American continent (14%) and other regions (3%). In May, pipes were sold in Europe (24%), Ukraine (14%), the MENA region (30%), the CIS (11%), the American continent (17%) and other regions (4%).
Railway products for the five months of 2021 were sold in the CIS (48%), Europe (32%), Ukraine (8%), the MENA region (3%), the American continent (7%) and other regions (3%). In May – in the CIS (48%), Europe (29%), Ukraine (7%), the MENA region (2%), the American continent (4%) and in other regions (10%).
According to Interpipe’s commentary, in May 2021, the company’s trading activity continued to recover in all key products and markets in connection with the lifting of quarantine restrictions in the world and the recovery of business activity.
At the same time, the total sales of the company’s pipe products in May increased by 9.1% compared to the previous month, to 48,900 tonnes, and by 6.1% in the five months of 2021, to 198,800 tonnes.
The Ukrainian industrial company Interpipe proceeds to expand its presence in the export markets, signing a three-year contract with Société Nationale Industrielle et Minière (SNIM) for supplying of 1,076 mm locomotive wheels according to the AAR standard.
The company said in a press release on Tuesday that SNIM is the only owner of 704 km railway infrastructure in Mauritania and is mainly operates large-scale freight transport.
The railway line connects the city of Zouérat, the center of country’s iron ore industry, with the port of Nouadhibou. The length of a single rolling stock consisting 200 wagons may be up to 2.5 km, so from two to four locomotives are usually used at the head of the railway train.
Director of Interpipe Railway Products Division Oleksndr Garkavij said that locomotive wheel is a technically complex product for North African countries. “Their wear resistance indicators have to be at a high level in sandy deserts. Moreover, Mauritanian trains are one of the longest and heaviest in the world. Our strategy is to continue increasing the share of export deliveries of railway products,” he said.
Interpipe is global producer of steel pipes and railway wheels, based in Ukraine. The company’s products are marketed in more than 80 countries all around the world via the network of sales offices located in key markets of Ukraine, Europe, North America and the Middle East. In 2020, Interpipe supplied 662,000 tonnes of finished goods, including 192,000 tonnes of railway products.
The ultimate owner of Interpipe Limited is Ukrainian businessman Victor Pinchuk and his family members.
The international vertically integrated pipe and wheel company Interpipe in January-March of this year reduced its net profit by 90.4% compared to the same period last year, to $ 12.826 million from $ 133.064 million.
According to the company’s interim report on operating and financial results for the three months of 2021, in January-March 2021 revenue decreased by 19.9%, to $ 200.952 million.
According to the company’s press release, following the results of Q1, 2021, EBITDA decreased by 53%, to $ 40 million, the amount of capital investments increased by 58%, to $ 17 million.
Net debt was $ 53 million with a net leverage ratio (net debt to EBITDA) of 0.2x.
The press release notes that in the first quarter of 2021 Interpipe continued to operate in difficult market conditions, which affected its financial results. Total revenues decreased by 20%, mainly due to the deterioration in the performance of the railway division after the imposition by Russia of embargo on the import of Ukrainian railway products. Thus, the revenues of the railway products division fell by 53%, while sales volumes decreased by 32%.
As a result, EBITDA for the first quarter of 2021 decreased by 53%. An additional negative effect is associated with the continuing global growth in market prices for goods and metal products. At the same time, the selling prices for steel pipes and railway products lagged behind the rise in production costs.
At the same time, Interpipe increased its capital investment by investing $ 17 million in overhaul and production development.
As of March 31, 2021, the company’s total debt fell to $ 110 million following the full redemption of 2024 eurobonds on January 26, 2021, keeping the net leverage ratio (net debt to EBITDA) at a low 0.2x.
Electric steelmaking complex Interpipe Steel of international vertically integrated pipe and wheel company Interpipe (Dnipro) in January-April of this year increased steel production, according to recent data, by 3.9% compared to the same period last year, to 283,000 tonnes.
As the company told Interfax-Ukraine, 90,000 tonnes of steel were produced in April, while in the previous month – 79,500 tonnes.
In 2020, the company reduced steel production by 11.2% compared to 2019, to 758,700 tonnes.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries all over the world through a chain of commercial offices located in the CIS, Europe, the United States and the Middle East.
