The Interpipe Steel electric steel smelting complex (formerly Dniprostal, Dnipro) has suspended work for a week since March 16, 2023 due to a shortage of scrap metal, which is the main raw material for the enterprise.
This is stated in the message of the enterprise, Ukrainian News Agency reports.
"The Interpipe Steel plant has temporarily suspended work since March 16 due to a shortage of scrap metal, which is caused by an extremely difficult situation with scrap procurement in Ukraine. First, it has fallen significantly: in a number of regions, the procurement process has been reduced to almost zero due to hostilities, lost capacity from scrap processing, the personnel potential of the industry has also decreased. Secondly, the export of scrap is breaking historical records, doubling every month, which puts the Ukrainian metallurgical industry on the brink of disaster," said plant director Andrii Bibik.
Answering the question whether this shutdown is planned, the director of the plant said that it is an unplanned temporary shutdown, as the enterprise is experiencing a serious shortage of scrap metal. "We had a planned simple one in October, now it's an unplanned one. Of course, during this time we will carry out maintenance of the main units," Bibik said.
According to the chairman of the board of Interpipe Vtormet Valentyn Makarenko, the shutdown of the metallurgical plant will last a maximum of 7-8 days.
"The situation is difficult, but we are working with our partners-suppliers of scrap, with some of them we conclude long-term and strategic agreements. This will allow us to provide the plant with raw materials and prepare the charge," Makarenko stressed.
He predicts that the scrap supply situation will improve in the third decade of March, and the plant will be restarted.
As Ukrainian News Agency earlier reported, in January-September 2022, compared to January-September 2021, the Interpipe pipe and wheel holding reduced its EBITDA by 18.5% to USD 123 million.
For 9 months of 2022, compared to the same period of 2021, Interpipe reduced revenue by 9.3% to USD 686.634 million.
At the same time, the company increased its profit 5.8 times or by USD 153.614 million to USD 185.952 million.
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.
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