Economy 2022-06-15T05:20:17+03:00
Ukrainian news
Interpipe To Invest USD 100 Million In Eco-Modernization Of Its Enterprises

Interpipe To Invest USD 100 Million In Eco-Modernization Of Its Enterprises

investment, steel, Interpipe, environmental modernization, environment

The Interpipe pipe and wheel holding intends to invest USD 100 million in the environmental modernization of its enterprises.

Denys Morozov, Director for Economics and Finance of Interpipe, announced this during a speech at the European Business Association forum, Ukrainian News Agency reports.

According to him, the purpose of these investments is to ensure the manufacture of products in accordance with international standards, to reduce emissions of CO2 and harmful substances, and to increase the energy efficiency of production.

Morozov noted that in 2012 the open-hearth production was closed and the environmentally friendly Interpipe Steel plant was put into operation.

"Today the open-hearth is closed, there is a completely environmentally friendly plant in which we have invested USD 1 billion, CO2 emissions have decreased 10 times, and the consumption of natural gas - 8 times," he said.

According to Morozov, during the construction of the plant, USD 200 million was invested in the infrastructure, which was built by the company independently, while significant funds were invested in the construction of the power transmission line.

It also invested in a scrap collection network.

According to Morozov, eight years passed from the idea of ​​the plant concept to its commissioning.

“Unfortunately, we talk a lot about ecology, about standards, but building a good ecological plant in Ukraine is also not easy. There are many restrictions and problems,” he said.

Morozov noted that during the construction of large projects with European partners, there are companies or credit agencies that help to raise funds, while compliance with European environmental standards is one of the important elements of financing.

"In our case, it was Sace, which fully covered all the financing risks and helped us raise funds... What is also very important, when you build with European partners and agencies, they require European standards and Sace had a key requirement - all eco-standards are at the level of European. If you choose European financing, there will be one requirement - European standards. Therefore, within the framework of this financing, there was a special eco-audit, which was carried out by Fihtner, they regularly came, took measurements, checked greenhouse gas emissions, ecology and confirmed that this was within the framework of European requirements, and only if all this was in the standards, we continued funding. For the first two or three years of work at our asset, emissions were measured and this affected the financing of our facility," Morozov said.

According to him, in accordance with environmental requirements for attracting European funding, an annual audit was carried out in 2012-2018, an air monitoring post was installed at the border of the plant's sanitary zone, a closed water treatment cycle was built, a protective casing (dog-house) was built, and at the same time it was managed to achieve a reduction in emissions of harmful substances into the air below the European standards, and CO2 emissions - less than 250 kg per ton of steel.

As Ukrainian News Agency earlier reported, in the first half of 2020, compared to the first half of 2019, according to unaudited IFRS consolidated financial results, the Interpipe increased its EBITDA by 19% to USD 149 million, reducing its revenues by 16% to USD 468 million.

The company’s EBITDA increased by 64% to USD 259 million and its revenue increased by 4% to USD 1,112 million in 2019, compared with 2018.

Interpipe’s product sales reduced by 7% to 798,000 tons in 2019, compared with 2018.

Interpipe is the largest producer of pipes and wheels in Ukraine. It controls the Nyzhniodniprovskyi pipe rolling plant (Dnipropetrovsk region), the Novomoskovsk pipe plant (Dnipropetrovsk region), and the Niko Tube seamless pipe plant (Nikopol, Dnipropetrovsk region).

Interpipe commissioned the Interpipe Steel steelmaking complex in October 2012.