Interpipe, a prominent Ukrainian industrial company, has reported substantial production achievements in the first half of 2024. According to Oleksandr Garkavy, Director of the company's railway products division, Interpipe produced nearly 43.5 thousand tons of railway wheels from January to June 2024. This significant output includes almost 11 thousand pairs of wheelsets and 2.2 thousand tons of axles, as per CTS reports.
"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," emphasized Garkavy.
The European market remains Interpipe’s primary focus, particularly in the freight cars and trains segment, where the company has established itself as a key player. Garkavy highlighted the extensive reach of their sales geography, spanning from Spain to Slovakia and from the Scandinavian countries to Greece. Notably, there are no direct deliveries to Portugal.
If the current production trends continue, Interpipe expects to ship 20,000 wheelsets, equating to 40,000 wheels, to the European market by the end of the year. Additionally, the company aims to fulfill contracts for nearly 105 thousand wheels.
"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.
Interpipe has recently signed a contract to supply wheelsets to Greenbrier, Europe’s largest railcar manufacturer. This partnership is expected to further increase Interpipe’s market presence and shipment volumes.
In the first quarter of 2024, Interpipe reported a net profit increase of 28.4% compared to the same period in 2023, reaching $73.39 million. The company’s revenue from product sales grew by 11.3% year-on-year, totaling $255.14 million, while EBITDA saw a slight decrease of 6.6% year-on-year to $74.14 million.
