Novomoskovsk dishware: direction to the EU market

Since Russian occupants massively invaded the territory of Ukraine the output of Novomoskovsk dishware, like all other Interpipe’s facilities, was completely paralyzed. During March production units were idled, contracts with traditional customers in Central Asia and the CIS lost, sales in Ukraine almost zeroed.

However, in April Novomoskovsk dishware restarted production in one shift facing numerous problems, namely raw material prices rose sharply: cold rolled steel hiked up by 29%, frit - by 44%, electricity - by 40%. Moreover, due to the destroyed logistics, the transport arm of delivery to the clients increased almost three times, to 30 days, and with it, its logistics costs.

Additionally, regarding the destruction and the occupation of Mariupol our cold-rolled steel supplier for the enamel production was lost. Currently, there are some inventories of raw materials for several months which will help Novomoskovsk dishware to maintain output level and save jobs. Now, the Company is searching for new steel suppliers, mainly in the European Union.

Nevertheless, Novomoskovsk dishware managed to restore pre-war production and sales volumes up to 70%, and in June even overdid the revised plan by 8%.

Mykolai Koba, Novomoskovsk dishware’s director:

- To stop sales decline we strengthened our sales team in Europe. Western European consumers are abandoning Russian tableware and switching to Ukrainian products. We also expanded our client base in friendly Baltic and Eastern European countries, developed new supply routes of dishware to Georgia, Armenia, and Azerbaijan.

In May, Novomoskovsk dishware reopened cooperation with the largest Ukrainian chain-store customers - the ATB and Epicenter, simplified discount system for other wholesale clients because their warehouses in Kharkiv and Kyiv were ruined by bombs. We support the modern Ukrainian trend and in July we are preparing to produce tens of thousands of mugs and small bowls with decals of patriotic motifs.