Business news from Ukraine

CENTRAVIS PLANS TO INVEST EUR 10 MLN IN 2022

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.

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CENTRAVIS INVESTS UAH 140 MLN IN ECO-MODERNIZATION

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.

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CENTRAVIS RAISES EUR 35 MLN FROM UKREXIMBANK TO FINANCE INVESTMENT PROGRAM

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.

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