Interpipe produced over 43 thousand tons of railway wheels in the first half of the year

Ukrainian industrial company Interpipe produced almost 43.5 thousand tons of railway wheels in January-June 2024. This was announced by Oleksandr Garkavy, Director of the company’s railway products division, CTS reports.

Also, in 6 months of this year, the company produced almost 11 thousand tons of wheelsets and 2.2 thousand tons of axles.

«We are talking about products that are shipped to customers, not for our own use. This production volume is significantly higher than in the same period in 2023,» he emphasized.

Currently, the European market is the main one for the company.

«It should be clarified that we are talking about the freight cars and trains segment. In this area, Interpipe is an important player in the EU market. The geography of our sales stretches from Spain in the west to Slovakia in the east, from the Scandinavian countries in the north to Greece in the south. In fact, Interpipe supplies its railway products to all European countries. There are no direct deliveries to Portugal,» said the director of the company’s railway products division.

If the trends of the first half of the year continue, the company is expected to ship 20,000 wheelsets to the European market by the end of the year, which is 40,000 wheels. In addition, almost 105 thousand wheels will be shipped under other contracts.

«This year, we will most likely exceed pre-war sales volumes. However, further development requires major investments in capacity expansion. At present, Interpipe’s existing facilities for the production of railway products for the EU market are 100% utilized. In addition, we have a significant problem with human resources,» summarized Garkavy.

He also said that the company has recently signed a contract to supply wheelsets to Greenbrier, Europe’s largest railcar manufacturer, which will help increase shipments to this market.

In January-March 2024, Interpipe increased its net profit by 28.4% compared to the same period in 2023 to $73.39 million. Revenue from sales of the company’s products increased by 11.3% y/y – to $255.14 million. EBITDA decreased by 6.6% y/y – to $74.14 million.

Interpipe is an international vertically integrated pipe and wheel company that ranks among the world’s top 10 seamless pipe producers and among the top 3 producers of all-rolled railway wheels.