Interpipe will not move or reduce production in Ukraine in favor of a new plant in Romania-CEO
The Ukrainian industrial company Interpipe does not intend to move production or reduce the volume of pipe production at plants in Ukraine in favor of the recently acquired Romanian Interpipe Roman plant. This was announced by the company's CEO Luca Zanotti in an interview with the specialized metallurgical publication Metal Expert.
"First of all, I must emphasize that after this purchase Interpipe does not intend to move production or reduce production volumes at our plants in Ukraine in favor of the Romanian one. Our production base in Ukraine, where, along with our pipe–rolling facilities, we have a technological complex for the production of railway products, is the basis of our industrial strategy, and it will be extremely expensive to replicate," he said.
According to him, production at the Romanian plant has already resumed, as soon as the company has formed a stock of round billets in its warehouses. Interpipe is currently focusing on increasing the supply of semi-finished products to the Romanian plant, while the pace of rolling and finishing of finished products will depend on market demand.
Luca Zanotti also said that Interpipe Roman is equipped with three pipe rolling states, but in recent years only one state has been working. "Our business plan is to restore production to that level," he stated.
When asked why Interpipe acquired the factory in Romania, the CEO pointed out several reasons. "Firstly, the Romanian plant is ideally combined with our steelmaking business, since Interpipe has underutilized steel production facilities in Ukraine. This potential can be used to ensure the operation of pipe–rolling equipment in Romania," he said.
The second reason, according to him, is related to the destabilization of global trade, which requires more flexibility in production, that is, presence in different geographical regions to meet customer needs. "Obviously, this is our first step in Europe. There is a lot of talk about Ukraine's membership in the European Union, and Interpipe is already in Europe with this first step. And last but not least, this is a "backup" option if we have problems in Ukraine," Luca Zanotti emphasized.