Khartsyzk Pipe Plant

Khartsyzk Pipe Plant (KhPP) is the largest CIS producer of longitudinal electric-welded large diameter pipes (508-1,422 millimeters), used in construction of gas and oil pipelines.

The company is located in the non-government controlled territory.

Location: Khartsyzk, Donetsk oblast, Ukraine
Shareholders: Owner: Metinvest Holding Nationalized by breakaway authorities and controlled by Vneshtorgservis CJSC (South Ossetia)
Markets: CIS countries until 2017
Products: Large diameter pipes

Production capacity

Production of pipes Pipe electric welding shop No. 2:
Line for manufacture of 1,220 and 1,440 mm diameter pipes, 532 thousand tons
Line for manufacture of 711-1,067 mm diameter pipes, 400 thousand tons
Line for manufacture of 508-1,422 mm diameter pipes, 200 thousand tons
Pipe welding shop No. 4:
External polyethylene coating line, 663 thousand tons
Internal epoxy and anti-corrosion coating line, 450 thousand tons

Staff and wages

Number of employees 1,582 (2016)
Average wage* UAH 55,800 per annum (2016)

* per worker before taxes

Charts and tables

Production results, thousand tons

300250200150100500
2013 255 kt2013
2014 238 kt2014
2015 69 kt2015
2016 17 kt2016
2017 3 kt2017
2018 0 kt2018

* structure of sales volumes, metric tons

Financial performance, $ million

 20132014201520162017
Sales 137.9 254.1 32.8 2.6 0.6
EBITDA 25.5 89.7 -7.6 -4.7 -21.7
EBITDA margin18.5%35.3% -23.3%--
Net income 4.836.8 -18.1 -7.6 -22.6
Net income margin3.5%14.5% -55.2%--
CAPEX 2.8 1.0 0.4 0.50.0

Key facts

2018

According to the media, the company resumed operations in July 2018. Its supplier of sheet products is Alchevsk Iron and Steel Works.

In March 2017

Metinvest Holding reported the loss of control over KhPP.

Sources: websites of the companies, media outlets