Centravis invests $14.5 million in pipe production for CCS and precision industries
Centravis Production Ukraine PJSC (Centravis Production Ukraine, Nikopol, Dnipropetrovsk region), part of Centravis Ltd. holding, presented two projects for the modernization of production and expansion of pipe production totaling $14.5 million at the conference on the restoration of Ukraine (URC2025), held on July 10-12 in Rome.
According to the company's information in the URC project catalog, the first project concerns the segment of pipe products of the oil and gas grade (OCTG). We are talking about the development and supply of seamless pipes and stainless steel pipes conforming to 25 CRA (Corrosion Resistant Alloy) standards, focusing primarily on the fast-growing Carbon Capture and Storage infrastructure (CCS) market in the USA and Europe.
It is expected that new equipment will be purchased that will produce pipes, couplings and casings for CO2 or oil wells in accordance with the API 5 CRA standard. The diameter is from 60 mm to 240 mm, the length is 11-13 m, the wall thickness is in a wide range.
Target market: carbon capture applications in the USA and Europe, oil and gas in the USA, Europe, and the Middle East.
The scope of work on the project has already been determined, the preliminary tender process for budgeting has been completed, and the project is ready for implementation. The installation of the equipment is planned at the Centravis premises in Nikopol in the hot shop. Licensing of API 5 CRA is expected by the end of 2025.
The total budget of the project is $11 million, it is necessary to attract $ 10 million, according to the company's data. Expected financial indicators: net present value (NPV) – $13.3 million, revenue in 2030 – $45 million, EBITDA in 2030 - $18 million.
The project launch period is two years.
Until 2025, $ 0.1 million has been invested in the development of the concept and technical project, this year financing in the amount of $ 0.3 million is required for design, in 2026 – $ 4.6 million for construction, in 2027 - $ 6 million for the start of operation.
The second project concerns the expansion of the product range by starting the production of small-size (diameter from 4 mm) seamless stainless pipes with high precision. The project will allow entering the market of hydrogen, semiconductor, medical and aerospace industries. He is expected to expand the Centravis product range, strengthening his position in the precision tube market, as it is a highly profitable segment. The target market is America, Europe, Asia and the Middle East.
The technological parameters of the project provide for the purchase of equipment to ensure production.
This project is also ready for implementation: the scope of work has been determined, and the preliminary tender process for budgeting has been completed. The equipment is planned to be installed in the Centravis premises in Uzhhorod. At the same time, it is specified that this project will be developed mainly on its own.
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