Enterprises of Ukrtruboprom association in January-June this year increased production of pipes by 5% compared to the same period last year – up to 253.5 thousand tons.
According to the data of the association on Thursday, in January this year about 30 thousand tons of pipe products were produced (44.9% to January-2022), in February – 39.5 thousand tons (80.4% to February). tons (80.4% of February-2022), in March – 57 thousand tons (1631.4% of March-2022), in April – 42.3 thousand tons (228.6% of April-2022), in May – 49.6 thousand tons (96.5% of May-2022), in June – 35 thousand tons (67.8% of June-2022).
At the same time, it is noted that in the first half of the year-2023, pipe companies demonstrated multidirectional dynamics. In particular, “Interpipe Niko Tube” and NPP with AI “Ukrtruboizol” increased production of seamless pipes by 12.4% and 81.8% respectively, while “Trubostal” reduced by 69.4%, “Centravis” – stainless pipes by 3%, “Interpipe NMTZ” – electric-welded pipes by 79.5%. Production of pipes by Oskar decreased by 27.7%.
General Director of Ukrtruboprom Association Heorhiy Polskiy noted that “the results of the first half of the year can be called positive for the industry as a whole, although it is necessary to note the effect of a low base of comparison for the same period last year”.
“It is obvious that the production capacities of the enterprises are not loaded to the pre-war level”, – stated the general director.
Nevertheless, he added, Ukrainian companies even in such difficult, military conditions are looking for customers and orders, establishing interaction with partners in foreign markets, mainly in Europe, which is close to Ukraine logistically.
“In addition, we hold positions in the Middle East and Central Asia, despite aggressive competition from manufacturers from China,” Polsky added.
As reported, the enterprises of Ukrtruboprom in the first quarter increased the output of pipes by 5.9% to 126.5 thousand tons. And it was noted that a strong concern of pipe companies is the situation with the supply of scrap metal to Ukrainian seamless pipe manufacturers, which use it as the main raw material. Thus, the first quarter of 2023 was characterized by a strong deficit of scrap in Ukraine, the volume of which reached 20% in the whole MMC.
“Obviously, this factor led to production losses at pipe mills. Moreover, the situation remains tense, as Ukraine has been experiencing a strategic scrap shortage for more than 20 years, and there are no tools to increase scrap procurement now. The situation is aggravated by record volumes of scrap exports, which are taken out of the country without paying duty through non-transparent schemes, which causes damage to the state budget,” Polsky emphasized.
Enterprises of Ukrtruboprom in 2022 reduced the production of pipes by 37.9% compared to 2021 – to 449.7 thousand tons. Last year, all plants demonstrated negative dynamics. “Interpipe Niko Tube” and “Trubostal” reduced seamless pipe production by 31.1% and 61.6% respectively, “Centravis” – stainless steel pipes by 38.3%, “Interpipe NMTZ” – electric-welded pipes by 67.1%. Production of pipes of PO Oskar fell by 20%, and only NGO with AI Ukrtruboisol reached the production level of the year before last. Dnipropetrovsk Pipe Plant is idle and in a state of liquidation.
PJSC “Centravis Production Ukraine” (Centravis Production Ukraine), a member of Centravis Ltd. holding, in January-June this year produced 6.73 thousand tons of seamless stainless steel pipes, which is 5.9% more than in the same period last year (6.35 thousand tons).
At the same time, Centravis CEO Yuriy Atanasov, quoted by the company’s press service, noted that even in the conditions of war and its challenges (shelling of infrastructure, disruption of logistics, power outages, undermining of the Kakhovskaya HPP dam), the company aims “not only at survival, but also at further trade expansion around the world”.
It is recalled that this year Centravis opened a new production facility in Uzhgorod with a total investment of more than UAH 50 mln. The branch specializes in tooling tubes for cars of well-known manufacturers.
According to Atanasov, these and other steps are aimed at increasing production volumes in the current and subsequent years and creating conditions for strengthening the company’s sustainability.
“Centravis was founded in 2000 and is among the top ten largest seamless stainless steel pipe manufacturers in the world. Its main production facilities are located in Nikopol (Dnepropetrovsk region), and in 2023 the company opened a branch in Uzhgorod.
The company employs more than 1400 people.
The geography of the company’s supplies exceeds 50 countries of the world. Currently “Centravis” has offices in the USA, Germany, Italy, Switzerland, Poland, United Arab Emirates. “Centravis” cooperates with Benteler Automotive, Buhlmann Group, Webco – with different companies on different continents.
Centravis Ltd. holding was established on the basis of CJSC “Nikopol Stainless Pipe Plant”, service and trading companies of LLC “Production and Commercial Enterprise “YUVIS”. Its shareholders are members of the Atanasov family. Centravis Ltd. owns 100% of shares of Centravis Production Ukraine PJSC.
Ukrainian industrial company Interpipe intends to increase supplies of pipes to Saudi Arabia and expand its presence in the Middle East.
According to the company’s Facebook post on Wednesday, Interpipe holds the economic front and continues to grow “no matter what.”
The other day, Interpipe, supported by its regular partner Al Sayed Center (ASCO), presented Ukrainian pipe products to construction companies and government organizations in Saudi Arabia, while informing them about the situation in Ukraine, the war, the company’s work in the new environment and the restructuring of supply chains.
Mr. Artem Artemov, Deputy Director for Middle East Sales, stated that Interpipe is well known in the macro-region as a supplier of quality pipes for the construction industry. Its products are used for air-conditioning systems, fire-fighting and as structural constructions.
“Saudi Arabia is one of the key countries for the company’s development and expansion in the region. We already have quite a history written over the past decade. Among the landmark projects in which Interpipe products have been used are the construction of the King Abdullah Financial District in Riyadh, the King Abdulaziz International Airport near Riyadh, the construction of the King Abdullah Financial District in Riyadh, and the construction of the King Abdullah International Airport near Riyadh. King Abdulaziz International Airport near Jeddah, Riyadh metro, buildings of Princess Nora bint Abdel Rahman University and King Fahd University of Oil and Minerals”, – noted Artemov, quoted by the press service.
It is specified that the business event was attended by 140 representatives of local construction and engineering companies, as well as the Ukrainian Ambassador to the Kingdom of Saudi Arabia Anatoly Petrenko.
“Let’s hold the economic front! Together we will overcome everything!”, the company’s information summarizes.
“Interpipe is a Ukrainian industrial company, producer of seamless pipes and railway wheels. The company supplies its products to over 80 countries all over the world via a network of commercial offices located in the key markets of the CIS, Middle East, North America, and Europe. The sales of railway products are carried out under the KLW brand.
Interpipe employs about 10 thousand people.
The company consists of five industrial assets: “Interpipe Nizhnedniprovsk Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko Tube”, “Interpipe Vtormet” and the electric steelmaking complex “Dneprosteel” under the Interpipe Steel brand.
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.
In 2022, Ukrtruboprom has reduced the production of pipes by 37.9% compared to the previous year – down to 449.7 thousand tons.
According to the association, all the plants showed negative dynamics last year. “Interpipe Niko Tube and Trubostal decreased their production of seamless pipes by 31.1% and 61.6%, respectively, Centravis – stainless pipes by 38.3%, Interpipe NMTZ – electric-welded pipes by 67.1%. The production of tubes at Oskar fell by 20%, and only Ukrtruboizol, an IPO, reached the level of production the year before last.
At the same time it is reminded that Dnepropetrovsk pipe plant is idle and is in the state of liquidation.
Director General of Ukrtruboprom Association Georgiy Polskiy noted that at the end of winter last year, after the full-scale invasion of Russian troops into Ukraine, virtually the entire pipe industry came to a halt. Nevertheless, later on the plants managed to partially restore production, and in the summer to have a stable load, although we cannot speak about pre-war volumes.
“A new test for the industry was the enemy strikes on the energy infrastructure facilities. The peak of the rocket attacks was in November-December, the country was several times plunged into blackout, pipe plants were limited by power supply and could not work rhythmically. As a result the production of pipes by the end of the year dropped below April 2022. On the whole, the last year output of pipes in Ukraine went down by 38%,” says the head of the Association.
He says that break up of the traditional logistic schemes, in particular, blocking of the Ukrainian seaports at the Black Sea, had an extremely negative influence on the industry. As a result, the companies used longer routes for exporting their products through Western border crossings and European seaports. This led to a rise in logistics costs by 2-3 times and hit the cost of Ukrainian products.
“Since autumn, pipe companies have had another challenge – export of scrap metal. From October to December the volume of exports reached about 25 thousand tons, increasing the deficit in the domestic market. At the beginning of 2023 the problem became catastrophic, because only in two months of this year export of scrap metal has already reached 23 thousand tons. This threatens the stable work of Ukrainian pipe enterprises”, – said Polskyy.
As reported, Ukraine in 2021 increased the production of pipes by 15.1% compared with the previous year – up to 980.7 thousand tons, including enterprises “Ukrtruboprom” increased their production by 32.6% – to 710.5 tons.
In January-September 2022, the international vertically integrated steel and railway company Interpipe cut its steel output by 36.3% year-on-year, to 463 thnd mt.
According to the presentation of the company results for the first nine months of last year, the output of pipes decreased by 30.2% to 309 thousand tons, railway products – by 49.6%, to 64 thousand tons.
In Q3-2022, steel output stood at 177 thnd mt (a 43.9% increase on Q2-2022), pipe output – at 105 thnd mt (a 4.5% decrease), railroad output – at 24 thnd mt (a 33.3% increase).
As previously reported, in 2021, Interpipe increased steel output by 28.1% compared to 2020 – up to 971 thousand tons, pipe output increased by 32.5% – to 614.8 thousand tons, while production of railway products decreased by 9.7% – to 172.1 thousand tons.
“Interpipe is a Ukrainian industrial company, which produces seamless pipes and railway wheels. The company supplies its products to over 80 countries all over the world through a network of commercial offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2021, the company sold 602 thnd mt of tubes and 174 thnd mt of railroad products. The company sells its railroad products under the KLW brand.
There are about 10 thsd. employees in Interpipe.
The company consists of five industrial assets: “Interpipe Nizhnedneprovsky Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko Tube”, “Interpipe Vtormet” and the electric steelmaking complex “Dneprosteel” under the brand name “Interpipe Steel”.
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.
In January-June of this year, the enterprises of the association “Ukrtruboprom” reduced the production of pipes by 24.4% compared to the same period last year – to 235.2 thousand tons.
According to the updated data of the association, in January, “Ukrtruboprom” enterprises increased the output of pipes by 2.2 times compared to the same period last year – to 61.3 thousand tons, in February – by 16.2%, to 49 thousand tons. tons, but production has been declining since March.
So, in March, the output of pipes was 3.5 thousand tons (5.9% to March-2021), in April – 18.5 thousand tons (32.1% to March-2021), in May – 51.4 thousand tons (86.5%), in June – 51.6 thousand tons (76.6%).
In general, in the first half of the year, all plants demonstrated negative dynamics. “Interpipe Nico Tube” and “Trubostal” reduced the production of seamless pipes by 14% and 44.4%, respectively, “Sentravis” – stainless pipes by 25%, “Interpipe NMTZ” – electric welding pipes by 37.6%.
General Director of “Ukrtruboprom” Giorgiy Polskyi noted that at the beginning of the year, pipe factories increased production against the background of favorable conditions in foreign markets, which is mainly due to the post-Kovid recovery of the world economy and high hydrocarbon prices. However, the full-scale invasion of Russian troops on the territory of Ukraine led to the sharpest decline in production: in March, almost the entire industry came to a standstill.
“In April, Ukrainian pipe manufacturers began to cautiously start up production facilities, and in May-June enterprises reached 50% capacity utilization from the pre-war period. However, individual plants are severely underutilized, as new supply chains and logistics schemes are still in the process of restructuring and formation, for example, “Interpipe NMTZ” used to receive raw materials (strips) from “Azovstal”, but now it is impossible due to the occupation of Mariupol,” said Polsky, quoted by the press service.
According to him, now logistics is the main factor why pipe factories cannot reach pre-war production volumes. The outage of many suppliers in the east and south of Ukraine has been a big loss for pipe workers from the point of view of traditional supply chains. In addition, many traditional logistics schemes have been disrupted: Ukrainian seaports on the Black Sea have been blocked, there is a serious shortage of gasoline and diesel fuel in the country, and the transport infrastructure has been destroyed by enemy missile strikes.
“This forces enterprises to look for new, more expensive routes for transporting products for export through western border crossings and European seaports. In addition, the constant increase in energy prices, primarily natural gas and electricity, lead to an additional increase in the cost of pipe products and reduce their competitiveness on foreign markets”, – summed up the general director.
As reported, in 2021, Ukraine increased the output of pipes by 15.1% compared to the previous year – to 980.7 thousand tons, in particular, the enterprises of “Ukrtruboprom” increased their production by 32.6% – to 710.5 thousand tons.
