Interpipe completes construction of a new wheelsets assembly shop for the EU and US markets
The Ukrainian industrial company “Interpipe” has made significant progress in the implementation of the project for the construction of a new workshop for the assembly of wheelsets for the EU and US markets at the “Interpipe NTZ” plant.
“The company continues to invest in the expansion of our capacities: in the first half of 2021, we invested over 13 million US dollars in the construction of a new thermal department at the Interpipe Niko Tube plant, and also made progress in the implementation of the project to build a new workshop for assembling wheelsets at the Interpipe NTZ plant for the EU and USA markets”, he said.
The press release also notes that for 6 months of this year, Interpipe increased its capital investments by 66%, having invested USD 31 million. CAPEX for new projects tripled to $ 21 million, reports Railway Supply magazine citing the manufacturer.
In addition, as F.Hraibe said, Interpipe managed to overcome the negative consequences of the RF embargo on the import of Ukrainian railroad products.
“We managed to overcome the negative consequences of the Russian embargo on the import of Ukrainian railway products by redirecting sales to other regions: the USA, CIS, Europe and India”, he said.
In the second half of the year “Interpipe” plans to maintain monthly sales of railway products at the level of 15 thousand tons, achieved in the second quarter.
As noted in the press release, in the first half of 2021, the total revenue of Interpipe slightly decreased by 2% YoY, to USD 460 million. “The 31% revenue growth of the pipe division was not able to fully compensate for the 40% drop in revenue of the railway products division after the imposition of the RF embargo on imports of Ukrainian railway products in February this year”, the document says.
At the same time, EBITDA for the first 6 months of 2021 decreased by 25% YoY to USD 111 million due to pressure on margins from rapidly rising prices for raw materials: natural gas, scrap metal. “Sales prices for pipe and railroad products did not keep pace with the rapid rise in prices for commodities”, the company said.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries of the world through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2020, Interpipe sold 662 thousand tons of finished products, including 192 thousand tons of railway products. Railway products are sold under the KLW brand.
Interpipe employs 11 thousand people. In 2020, the Company transferred UAH 2.54 billion to the budgets of all levels.
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