By developing the range of products, Interpipe Nico Tube is trying to achieve pre-war production indicators
Ukrainian industrial company Interpipe has mastered the production of more than 200 new types of pipe products since the start of the full-scale war. This was reported by NV in a report from Nikopol.
By developing its product mix, Interpipe Niko Tube is trying to reach pre-war production levels. At that time, the monthly output of pipes reached 70 thousand tons, and now it is no more than 50 thousand tons.
“It is possible to jump over this ceiling not so much by quantity as by variety, or, as metallurgists say, by product mix. That’s why, over the years of full-scale invasion, Interpipe has mastered more than 200 new types of pipe products for European consumers. Even in such a ruthless environment, it is possible to enter unique niches,” the statement said.
Examples of new products include pipes for truck axles. Until recently, there were only three suppliers of such products in the world. Now Interpipe has become the fourth.
Another unique project was implemented by the company in June this year. “Interpipe supplied a trial batch of special thick-walled pipes to an Australian client. Until now, the Australians have been buying pipes from the EU, but at the expense of Ukraine, Australia is expanding its consumption geography.
At the same time, the article says, the domestic market consumes a small share of the company’s pipes. This is due to the prolonged economic stagnation of the past decades. The domestic market has shrunk even further as a result of the Russian-Ukrainian war. The main consumers are gas producers.
“We cooperate with them (gas producers). The volume of gas production in Ukraine has not fundamentally changed. Also, Ukraine’s recovery is inevitable after the war. We understand that our pipes can be used as load-bearing structures or gas communication systems. If we are talking about the production of beams, channels, etc., there will be a huge demand,” said Vyacheslav Chernov, Director of Interpipe Nico Tube.
However, the most challenging issues for future growth and even current survival are the availability of human capital, logistical problems, and the provision of affordable and competitive electricity. It is worth noting that despite the difficulties of wartime and proximity to the front line, Interpipe Niko Tube is gradually approaching its pre-war production level, exporting pipes to 80 countries, expanding its product range, continuing to invest and overcoming the challenges of war on a daily basis.
In 2023, Interpipe sold 387 thousand tons of pipe products and 95 thousand tons of railway products. During the year, the company paid UAH 4.4 billion to the budgets of all levels, which is a record amount of taxes and fees paid.
In addition, despite the difficulty of doing business in a time of war, the company announced an average 20% increase in salaries for employees at its plants in Dnipro, Nikopol and Novomoskovsk starting March 1, 2024.
Interpipe is a Ukrainian industrial company, a producer of steel pipes and railway products. The company’s products are supplied to more than 50 countries through a network of sales offices located in key markets in the Middle East, North America and Europe.
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