The Nizhnedneprovsky pipe rolling plant of Victor Pinchuk's Interpipe company, in order to minimize the risks of losing market share, is diversifying customers by entering additional markets in foreign countries and improving product production processes.
According to the interim report of the company's management for the 4th quarter 2023, the potential risk of loss of market share is due to the emergence of new competing enterprises and the subsequent redistribution of the market. The continuation of this trend in the future may negatively affect the financial and economic condition of the enterprise.
It is clarified that in order to minimize the risks of losing market share, the enterprise is diversifying its customer base by entering the markets of foreign countries. Thus, over the past 10 years, the list of product buyers has been replenished by enterprises from Kazakhstan, Turkmenistan, Uzbekistan, the USA, the UAE, Saudi Arabia, Brazil and India.
In addition, the report states that the external economic environment has a huge impact on activities situation and tax policy of the state. Fierce competition in the domestic and world markets forces society to constantly improve product production technology, increasing its quality while reducing costs.
The problematic issues of the enterprise are the increase in duties on wheels produced at NTZ for the Eurasian Economic Union (Belarus, Kazakhstan, Russia, Armenia, Kyrgyzstan) up to 34.22%, an increase in railway tariffs and prices for gas and metal, which affects the increase in production costs.
The activities of the company may be affected by instability of legislation, in particular changes in tax policy, deterioration of the general economic situation in Ukraine, a sharp increase in the cost of borrowed funds.
Nizhnedneprovsky Pipe Rolling Plant produces straight-seam welded pipes with a diameter of 152 to 530 mm. Its production capacity exceeds 850 thousand tons.
