The company managed to maintain foreign markets by diversifying sales
During 2.5 years of a large-scale war, the Ukrainian industrial company Interpipe remains a major exporter of products with high added value. Denys Morozov, irector of the company’s pipe division, told about it during the forum «Ukrainian exports: is the window opening?», organized by Ukrainian Pravda.
Export positions are maintained even though the company’s enterprises are located in the front-line Dnipro region, and Nikopol’s Interpipe Niko Tube is in the zone of active hostilities.
According to Denys Morozov, exports account for 80-85% of the company’s production volume, for some product groups this indicator exceeds 90%.
As the director of the pipe division explained, the company preserved foreign markets, including by diversifying sales. The process was started 10 years ago, when the EU, the USA and the countries of the Middle East were identified as key directions.
The easing of trade barriers gave the company the opportunity to increase supplies to the markets of Europe and the United States.
So, last year and in 2024, after the temporary cancellation of all quotas and duties, Interpipe increased deliveries of Ukrainian pipe products to the European Union. Trade liberalization allowed the company to look for different niches in the European market and enter them. In addition, Interpipe intensified R&D, developing more than 200 new products for customers in the EU. An additional advantage against the background of the green agenda was the electrosteel plant Interpipe Steel – the enterprise smelts steel with the lowest carbon emissions in Europe.
At the same time, logistics was a significant challenge for deliveries to the USA, because the products are shipped by sea to Houston. However, Washington’s temporary cancellation of tariffs on Ukrainian products made it possible to compensate for these additional costs and work on expanding the range of customers in this region.
«Interpipe’s model of work in this market involves interaction with distributors who actually perform the functions of supply departments of oil and gas companies. At the same time, the group presents its product line to mining companies. This is necessary so that the end consumer knows the brand,» explained Denys Morozov.
As GMK Center reported earlier, Interpipe expands logistics rail products for distant markets using motor vehicles, feeder ships and ocean container ships. In addition, the company recently for the first time in its history began operating a time charter vessel.