Back to news 2022-01-24

Interpipe expanded sales of pipe and railway products in 2021

Interpipe, a global producer of steel pipes and railway products, increased its sales volumes of pipe and railway products by 17% y-o-y in 2021. Total sales amounted to 776 kt. Share of export and domestic sales stood at 82% and 18%, respectively.

Sales of pipe products increased by 28% y-o-y and amounted to 602 kt backed mainly by robust demand for OCTG pipes. Its sales spurred by 2.3 times, up to 191 kt.

Soaring oil prices encouraged energy companies to invest having strengthened demand for tubular products worldwide and in the MENA region, particularly. Interpipe increased pipe sales in the Middle East by 20% y-o-y in 2021.

Interpipe has been consistently implementing its strategy towards expansion of the share of premium pipe products in its product portfolio. In 2020 sales of premiums amounted to 27 kt. However, by the end of 2021 this figure rose by 56% y-o-y, up to 42 kt.

Last year, domestic pipe sales grew by 12% y-o-y. Sales to private gas companies were main driver of the growth, while sales to state-owned energy companies had not changed significantly.

Sales of railway products – wheels, wheelsets, axles, and tires – in 2021 dropped by 10% y-o-y and amounted to 174 kt.

Ukrainian rail car and wagon building industry has been still in stagnation, in 2021 freight wagons production contracted by a third, to ca. 2 thousand units. In contrast, the potential of Ukrainian transport engineering is much higher, but owners of obsolete rolling stock still refrain from investing in its renovation. Nevertheless, the growth of the after-market segment in 2021 allowed Interpipe to keep its sales in the domestic market almost at the level of 2020.

Sales to the CIS market in 2021 shrank by 25% y-o-y as the Russian Federation had imposed the embargo on imports of Ukrainian railway products in February 2021. However, Interpipe succeeded in diversification and redirecting its sales to the European Union, Americas, and the Middle East shortly in Q2 2021 that enabled the Company to partially offset the negative impact of the embargo.

In 2021, Interpipe significantly increased sales of wheelsets to export markets, mainly to the European Union. 20 thousand units of wheelsets were sold (+25% y-o-y). At the same time, sales of wheelsets assembled at own facilities surged by 38% y-o-y.
Fadi Hraibi, CEO at Interpipe:
- Interpipe is well on track of its strategy towards expansion of sales of high value-added products. For 2022, we have set as our ambitious objective to double sales of premium and semi-premium tubular products.

To achieve this, we intend to proceed with further prequalification and deliveries to major oil and gas companies in North America and the Middle East. Moreover, Interpipe is focused on expanding the ange of our own premium connections (UPJ-ULT and UPJ-SF).

The railway product division has also been assigned with an ambitious task to expand product portfolio in the passenger railway products segment. In 2020-21, Interpipe successfully supplied passenger railway wheels for Deutsche Bahn’s high-speed trains, but now we are to complete certification with other global rail car and wagon building companies.

Interpipe intends to invest more in ramping up its production capacity. For 2022, we have budgeted record capital expenditures in new projects of $77 million. The Company is to complete a key project in the pipe division - construction and launch of the heat treatment line at Interpipe Niko Tube that will increase production capacity for premium pipe products.

In the railway division, Interpipe will continue ramping up its capacity in wheels machining and also start upgrading the thermal section of the wheel-rolling shop.
About the company:
Interpipe is global producer of steel pipes and railway wheels, based in Ukraine. The company’s products are marketed in more than 80 countries all around the world via the network of sales offices located in key markets of Ukraine, Europe, North America and the Middle East. In 2021, Interpipe supplied 776 kt of finished goods, including 174 kt of railway products.

Interpipe has 10 thousand people working at the company’s facilities. During 2020 the Company transferred UAH 2.54bln in taxes to budgets of all levels and extra-budgetary funds.
Contacts for the mass media:
Andrey Pisarevskiy
Press Officer
Phone: +380 44 233 66 53
Cell: +380 67 952 17 62

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