Dnipropetrovsk Pipe Plant

Dnipropetrovsk Pipe Plant (DPP) produces seamless hot-finished and cold-formed pipes, electric-welded pipes, as well as seamless rectangular and welded pipes. DPP pipes are mainly used in the construction sector.

The company’s output sharply decreased after 2011 due to problems with the supply of raw materials linked to the lack of floating assets.

Location: Dnipro, Ukraine
Shareholders: The Industrial Union of Donbas
Markets: Ukraine, CIS, Turkey
Products: Seamless pipes for construction

Production capacity

Production of pipes Total production capacity — 700 thousand tons per annum.
Seamless pipe shop: TPA-80 pipe and tube unit with 8- and 15-cage mills, TPA-140 pipe and tube unit with lengthwise rolling mills and 12-cage calibration mill
Pipe-drawing shop No. 2: 6 cold rolling mills, 3 three-lined drawing mills
Pipe-drawing shop No. 3: 9 cold rolling mills, 9 drawing mills, 1 pipe section mill
Electric welding shop: 2 electric welding mills 57-159

Staff and wages

Number of employees 1,192
Average wage* UAH 68,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

80706050403020100
2012 79 kt2012
2013 33 kt2013
2014 32 kt2014
2015 12 kt2015
2016 27 kt2016
2017 19 kt2017
2018 20 kt2018
302520151050
2015 12 kt2015
2016 25 kt2016
2017 19 kt2017
2018 18 kt2018
21.510.50
2015 0 kt2015
2016 2 kt2016
2017 0 kt2017
2018 2 kt2018

Indicative sales structure by products in 2018

Indicative sales structure by countries in 2018

* structure of sales volumes, metric tons

Financial performance, $ million

 20132014201520162017
Sales 42.1 27.6 11.7 13.2 12.2
EBITDA -26.4 -3.8 -4.5 -10.3 -10.1
EBITDA margin -62.6% -13.6% -38.4% -78.1% -82.2%
Net income -30.3 -8.4 -7.0 -11.7 -11.0
Net income margin -71.9% -30.4% -60.1% -88.5% -89.5%
CAPEX 0.3 0.2 0.0 0.0 0.0

Key facts

In 2018

DTEK Dnipro Power Grids, the supplier of electricity to DPP, planned to stop the electricity supply to the company due to the latter’s huge debt of UAH 48 million.

2016

According to the media, in 2016, the company worked with periodic interruptions because of lack of pipe billets despite orders for the supply of pipes. The managing company, ISD, was responsible for the supply of raw materials.

In its 2015 annual report

DPP highlighted problems with floating assets. A bankruptcy case was initiated on the claim filed by Radical Bank. The amount of the claim was UAH 10 million.

Sources: websites of the companies, media outlets