Interpipe invested $83 million in production since the beginning of the war

Interpipe operates in extremely challenging, even military conditions. The company’s plant in Nikopol is under constant shelling just a few kilometers from the front line. However, despite these circumstances, Interpipe continues to invest. Since the beginning of the war, it has invested $83 million in product quality and new production lines.

This was stated by Aleksandr Garkavij, Director of Interpipe’s Railway Products Division, during his speech at the panel “Leadership, Competitiveness, Sustainability: Success Stories of Ukraine’s Top Investors and Enterprises” at Ukraine House Davos at the 55th World Economic Forum in Davos. GMK Center briefly summarizes the main points of the speech.

About Interpipe

Interpipe is a vertically integrated company combining all stages of steel goods production starting from collecting and processing ferrous scrap as row material and ending with output of steel pipes and railway products, inter alia, wheels, axles and wheelsets.

Interpipe operates five production sites employing 9,000 people in three cities in the Dnipropetrovs’k region, which are located close to the frontline. Furthermore, one of our mills is located appr. 7 km from line of battlefield and is recognized by Ukrainian government as an active combat zone.

Interpipe is an export-oriented business, roughly 83% of its total sales were made for export (9m2024). Furthermore, the European market is our domestic market with a share of 47% (9m2024). Our clients include rolling stock building giants and railway operators such as Alstom, Greenbrier, Deutsche Bahn and Tatravagonka. Two out of three freight railcars in Europe are fitted with Interpipe wheels, which were made in Ukraine.

13 years ago when no one was talking about industrial decarbonization, and the European Green Deal policy was not even in the plans, Interpipe commissioned the innovative electric arc steelmaking complex Interpipe Steel. The total investment in its construction amounted to $1 billion. So far, this is the largest environmental investment in Ukrainian industry since our country gained its Independence. Moreover, this investment made in advance right now allows Interpipe to be the most effective producer of railway products regarding eduction of CO2 emissions.

Key challenges of the company

Interpipe operates in an extremely harsh and challenging environment, even in a military one. For this reason, the company’s top priority is to ensure the safety of its personnel. For sure, we have big shelters under each of our facilities, which are fully equipped and operational, but there is not enough time actually for some people to get into those shelters. So, we have actually put a place, especially in Nikopol, for the mobile concrete shelters.

Secondly, given the ongoing mobilization in Ukraine, we have obvious recruitment difficulties of blue-collar workers. To overcome them, Interpipe attracts graduates from the universities and vocational schools, reintegrates into the new production workplaces veteran soldiers demobilized from the Army, and retrains workers hired from the labor market its own professions.

The third challenge is to convince our clients that we are able to deliver finished goods safety and just-in-time despite our location near frontline.

Another challenge is to organize the offline process of technical audits. Employees of most European companies with state stakes are prohibited from coming to Ukraine in accordance with their internal policies.

I can also mention the problem of wartime risk insurance. It’s being discussed by authorities, but still there are no real programs and tools to insure wartime risks.

Interpipe continues to invest

Interpipe continues to invest channelling $83 million in product quality and new production lines, including at our pipe rolling shop in Nikopol since the beginning of the war. As I earlier said, Nikopol is located 7 km from the occupied city of Enerhodar. It is there the Zaporizhzhia Nuclear Power Station the largest NPP in Europe is located with positions of the enemy soldiers and artillery.

Interpipe has proven by its hard work that it is a responsible supplier. We are grateful for the trust of our partners and for the faith in Ukraine and in whole Europe. We are ready to be in Europe! Believe in us! Believe in Ukrainian companies! Believe in Ukraine!