The import of rolled steel does not completely cover the production needs of the enterprise
The war hit the entire economy of Ukraine and the production of freight railcars. It is currently impossible to assess the negative impact on the railcar-building industry due to the obvious lack of official statistics. However, there are certain exceptions. DMZ Karpaty is one of several car-building plants that continue to work in the current difficult conditions, including due to the diversification of activities.
The activity continues
We understood that continuing to work is one of the ways to help our country. The functioning of the economy, the preservation and provision of jobs, and the support of employees are the keys to success on the way to victory.
Currently, all our directions are active, such as: railcar building, railcar repair and container production. The portfolio of orders is formed until March 2023 inclusive.
Despite the difficult situation in general, the company continues to invest in production and expand the range of products. We have successfully designed, tested and put into serial production three innovative models of freight railcars: semi-railcar 14-hatch, mod. 12-8520; semi-railcar with a deep bottom, mod. 12-8520-01, and hopper cement truck, mod. 19-8530. Today, we continue to develop two new models of fitting platforms and containers.
The company lacks special profiles for railcar construction, which were produced by the Azovstal plant, and steel sheet rolled by the Ilyich Iron and Steel Works of Mariupol.
Also, due to the stoppage of the steel companies Azovstal and Azovmash’s production, the rolling of the zeta profile for the production of spinal beams was stopped. Therefore, the production of new freight railcars in Ukraine has completely stopped. To overcome this problem, we have developed and prepared for acceptance by the interagency commission five models of railcars made with a welded spinal beam.
DMZ Karpaty also imports profiled pipes, I-beams and steel sheet metal. Logistics has changed and become more expensive. The increase in the prices of steel products is caused by the increase in the exchange rate, fuel prices, etc. But imports do not completely cover the company’s needs, since EN standards, according to which imported rolled steel is produced, differ from DSTU.
Prices and production
Before the start of the war, we had materials in our warehouse 3-6 months in advance. This made it possible to hold prices, but stocks are not eternal. Today, prices for a ton of steel products have increased by 25-35%, and this has influenced the increase in the price of final products.
At the beginning of the war, DMZ Karpaty produced hundreds of steel urchins, provided dozens of their trucks for the transportation of humanitarian aid, and produced plates for body armors. Also, the work rooms were converted into rest rooms for receiving displaced persons at the plant, the bomb shelter was modernized and equipped with generators, first-aid kits, drinking water, food products, etc.
Since our profile includes the production of containers and steel structures, we considered such a direction as the construction of houses that can be fully equipped for the lives of displaced persons in the western regions of the country.
Due to the war, the work of the Black Sea ports of Ukraine was practically paralyzed. When the shipment of grain crops stopped, the Karpaty plant began serial production of K-4556 and K-4556-01 containers for transporting bulk materials on plant-made fitting platforms, which correspond to the dimensions of the models’ appearance’s description for movement on European tracks.
Our subsidiary company Karpaty Spetsodyag LLC also came to help in the fight against the enemy. Today, all production facilities are involved in the production of military uniforms for the Armed Forces of Ukraine.
Relations with customers
We work and fulfill all obligations to our counterparties in accordance with the contracts. For our part, we are doing everything possible to maintain all positions. However, in addition to our production philosophy, we must not forget about the situation in the country in general and force majeure circumstances. We have an individual approach to each customer in solving any issues. We are committed to the idea of respect and decency in treating our customers, employees and partners. The reputation of our company is important to us. In general, everyone treats each other with understanding.