Interpipe Pipe Capacity Utilization 60-70% Of Pre-War Level

The capacity utilization of the Interpipe Pipe and Wheel Holding in May-June amounted to 60-70% of the pre-war level, railway wheels - 45-50%.

The director general of Interpipe Andrii Korotkov said this in an interview with Forbes, Ukrainian News Agency reports.

"In May-June, Interpipe's pipe capacity utilization averaged 60-70% of the pre-war level, railway wheels - 45-50%. Plans for the 3rd quarter are to maintain this level, if possible to increase it by 5-10%," he said.

According to Korotkov, the war did not greatly affect the company's sales markets, in particular, after the introduction in 2019-2021 of corresponding duties and embargo by the Customs Union on Ukrainian pipe and railway products, Interpipe does not supply its products to this market.

"In general, Interpipe has been actively diversifying its sales markets since 2014, the main of which are the European Union, the Middle East and the United States. The company supplies products to 80 countries around the world to all major metal consumption markets except Japan and China. We also develop new products for our customers, since the demand for them depends not on the war in Ukraine, but on the trends in the development of oil and gas, construction and railway industries in the world... The situation with sales of railway wheels is slightly more complicated, since a large share was in the CIS markets. However, we are intensifying cooperation with European, Turkish, Indian railway companies. There is stronger competition in these markets, their capacity is smaller, but Interpipe is able to operate in premium niches, such as wheels for passenger high-speed trains," he said.

Korotkov noted that at the end of 2021, the shares of sales for export and the domestic market amounted to 82% and 18%, respectively, but from February 24, sales in Ukraine decreased very much.

The war has negatively affected both the oil and gas sector and the construction sector, as the entire southeastern part of the country is gripped by war. But the enterprises of NJSC Naftogaz of Ukraine in other regions continue to work, and Interpipe continues to cooperate with them, supplying them with pipes. In addition, Ukrzaliznytsia and some private enterprises continue to repair wagons and, accordingly, order wheels from us," he said.

As Ukrainian News Agency earlier reported, the Interpipe Pipe and Wheel Holding sent a vessel loaded with pipes to the United States for the first time since the beginning of the war.

In 2021, compared to 2020, Interpipe reduced EBITDA by 16.3%, or USD 44.6 million, to USD 228.4 million.

In 2021, compared to 2020, the company cut profit by 2.1 times, or USD 103.8 million, to USD 91.3 million and increased revenue by 31%, or USD 267.8 million, to USD 1.133 billion.

In 2021, compared to 2020, the holding increased the sale of pipe and railway products by 17% to 776,000 tons.

Interpipe is the largest producer of pipes and wheels in Ukraine, controlling the Nyzhniodniprovskyi Pipe Rolling Plant, the Novomoskovsk Pipe Plant, and the Niko Tube Nikopol Seamless Pipe Plant (all in the Dnipropetrovsk region).

In October 2012, Interpipe put into operation the steelmaking complex Interpipe Steel.