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.
PJSC Centravis Production Ukraine (Centravis Production Ukraine), part of the Centravis Ltd. holding, has resumed the production process after it was suspended last week due to shelling by Russian invaders of the city of Nikopol, Dnepropetrovsk region, where the company’s assets are located.
“Last week, we suspended production due to the tense situation in Nikopol. The shelling of Nikopol, fortunately, stopped. The employees of Centravis were not injured. The production equipment was not damaged. Today, the company’s team decided to resume production,” said the director of Chief Sales Officer, CSO Artem Atanasov in a letter to clients on Monday.
According to him, the production works in one shift.
In turn, sales managers continue to take orders.
“We are observing all security measures,” Atanasov stressed.
As reported, Centravis last week continued to ship products despite the suspension of production. At the same time, the supply of blanks to the enterprise was stable.
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.
Agroholding MHP, the largest producer of chicken meat in Ukraine, in June 2022 slightly changed its economic activity compared to May of this year, reducing chicken production by 2% to 56.8 thousand tons, but increasing its sales by 4 % – up to 55.7 thousand tons, the holding reported on the London Stock Exchange on Friday.
It is noted that the agrarian group’s operating activity is still below last year’s figures due to the full-scale Russian invasion of Ukraine: in June 2022, chicken production was 89% of June 2021, and its sales were 82%, respectively.
It is specified that in the domestic market in June 2022, chicken sales remained at the level of June 2021 – 25.59 thousand tons, which is 12% less than the volumes sold in Ukraine in May 2022. In June of this year, chicken exports decreased by 29% compared to June 2021 – to 30.1 thousand tons, but exceeded the figures of the previous month by 24%.
Thus, the share of chicken exports in June of this year decreased by 9 percentage points (pp) compared to June 2021, to 54% from 63%, but increased by 9 percentage points. compared to last month.
The average selling price of poultry meat in June increased by 19% year-on-year to $2.0/kg.
During the specified period, MHP also reduced the production of meat products and semi-finished products by 46% compared to June 2021 – to 2.42 thousand tons, but increased by a third compared to May 2022.
According to him, in June 2022, sales of sunflower oil increased by 2.2 times compared to June last year and 2.6 times compared to May of the current year – up to 22.5 thousand tons. At the same time, sales of soybean oil increased by 15% by June 2021 and 3.6 times by May 2022 – up to 4.04 thousand tons.
“Harvesting of winter crops (wheat, barley and rapeseed) has already begun and is on schedule. Spring crops are in good condition. The weather conditions are also good,” the agricultural holding states in an exchange message.
MHP is the largest chicken producer in Ukraine. It is also engaged in the production of cereals, sunflower oil, meat processing products. On the European market, MHP supplies chilled half-carcasses of chickens, which are processed, including at its enterprises in the Netherlands and Slovakia. In February 2019, the agricultural holding completed the acquisition of the Slovenian company Perutnina Ptuj.
MHP generated $393 million in net profit in 2021 against a net loss of $133 million in 2020, while its revenue grew by 25% to $2.37 billion.
The founder, majority shareholder and head of the board of MHP is Ukrainian businessman Yuriy Kosyuk.
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.
Cardboard and Paper Company LLC (Lviv), a major Ukrainian manufacturer of cardboard tubes and sanitary and hygienic products, increased production by 42.1% in January-June compared to the same period in 2021, to UAH 501.28 million.
According to the statistics of the UkrPapir association provided to Interfax-Ukraine, in kind, over this period, the company increased the production of paper – the basis for sanitary and hygienic products – by 12%, to 3,440 tonnes, while increasing the production of toilet paper in rolls by 39%, to 2.1 million pieces.
At the same time, the output of cardboard products fell by 2.2%, to 12,840 tonnes.
According to the statistics of UkrPapir, the factory continued to work all months since the beginning of the year, reducing the production of paper and cardboard in March, but in April and May it already increased their production by 16.4% and 6.7%, respectively (compared to the same months last year), and in June by 7.7%.
Cardboard and Paper Company (before 2011 it was Lvivkartonoplast) produces goods and semi-finished products from recycled cardboard (cardboard sheets, corners, tubes) and cellulose paper (toilet paper, towels, napkins of White Line and Papero trademarks).
In 2021, the company produced products worth UAH 782.7 million, which is 46.7% more than in 2020.
In January-June of the current year, the enterprises of the Ukrtruboprom association, according to recent data, reduced production of pipes by 27.1% compared to the same period last year, to 226,900 tonnes.
According to a press release from the association on Wednesday, in January, Ukrtruboprom enterprises increased production of pipes by 2.2 times compared to the same period last year, to 61,300 tonnes, and in February by 16.2%, to 49,000 tonnes, but production has been declining since March.
So, in March, production of pipes amounted to 3,500 tonnes (5.9% compared to March 2021), in April – 18,500 tonnes (32.1% compared to March 2021), in May – 51,400 tonnes (86.5%), and in June – 43,200 tonnes (64.5%).
It is specified that in general, in the first half of the year, all plants showed a negative trend. Interpipe Niko Tube and Trubostal reduced production of seamless pipes by 14% and 44.4% respectively, Centravis stainless pipes by 25%, Interpipe Novomoskovsk Pipe Plant electric-welded pipes by 37.6%.
Heorhiy Polsky, General Director of Ukrtruboprom, noted that at the beginning of the year, pipe plants were increasing their output amid favorable external market conditions, which were mainly due to the post-COVID recovery of the global economy and high hydrocarbon prices. However, the full-scale invasion of Russian troops into the territory of Ukraine led to a severe decline in production: in March, almost the entire industry stopped.
