In the face of ongoing conflict and disruptions to Ukraine’s industrial base, Interpipe, a prominent Ukrainian pipe and wheel manufacturer, has positioned itself as a key supplier of critical railway products. With the war severely affecting Ukraine’s eastern regions, home to many of the country’s key industrial plants, the company is now tasked with fulfilling Ukraine’s rising need for railway products, particularly wheel-rolled centers for locomotives and suburban electric trains. According to Olexander Roslik, technical director of the company's railroad division, Interpipe is fully equipped to meet the growing demand for these essential components.
Before the war, many of these specialized railway products were produced in the eastern part of Ukraine, where significant industrial plants were located. However, due to the conflict, most of these factories have either ceased operations or are directly in the war zone, making it impossible to maintain production. Interpipe has stepped into the breach, leveraging its extensive experience in the production of wheel-rolled centers for various types of rolling stock. The company has been producing these wheel centers since the mid-2000s for international markets, including countries like India, Uzbekistan, and those in the Baltic region.
The wheel-rolled centers that Interpipe produces are considered superior to cast wheel centers, which have traditionally been used in railway applications. The technology behind rolled wheel centers involves a process of steel pressure treatment, which improves both the quality and performance of the finished product. As Roslik explained, rolled wheel centers have fewer non-metallic inclusions in the steel compared to cast centers, and their microstructure is more homogeneous. These improvements lead to enhanced mechanical properties, including greater strength and durability. As a result, railway operators prefer rolled wheel centers due to their increased reliability and longer lifespan, which is especially critical in demanding operational environments.
Despite the challenges posed by the ongoing conflict, Interpipe has continued to invest heavily in its operations to maintain competitiveness both domestically and internationally. In 2023, the company’s capital expenditures rose by 48%, reaching $31 million. This commitment to investment underscores the company’s long-term strategy of expanding its production capacity and enhancing its technological capabilities. Additionally, Interpipe is focusing on green steel production, with a major investment project of approximately $1 billion underway to increase its capacity for sustainable steel production. This investment aims to position Interpipe as a leader in the green steel sector, in line with global trends toward sustainability and carbon reduction.
Interpipe’s ability to meet Ukraine’s critical needs for railway products is also reflected in its production figures. In the first half of 2024, the company increased its output of railway products by 19.1% year-on-year, reaching 56,000 metric tons. This includes a 20% rise in the production of railway wheels, which reached 42,000 metric tons. Despite the challenges in the domestic market, Interpipe has managed to expand its reach, with 40,000 metric tons of railway products being shipped to Europe, a 37.9% increase compared to the previous year. However, the company noted a 10% decrease in deliveries to the Ukrainian market, reflecting the difficulties posed by the war.
As a vertically integrated company, Interpipe controls every step of the production process, from raw materials to finished products. This integration allows the company to maintain a high level of quality control and adapt quickly to market demands. In addition to its efforts in the railway sector, Interpipe is a major global player in the production of seamless pipes and is one of the top three producers of solid-rolled railroad wheels. This international presence helps cushion the company from domestic market fluctuations and positions it as a significant player in the global steel industry.
Looking forward, Interpipe’s strategy revolves around further expanding its production capabilities, enhancing its technological infrastructure, and continuing its investment in green steel. The company remains focused on maintaining its market leadership while navigating the complex and often volatile conditions in Ukraine. Despite the challenges of the war, Interpipe’s resilience and commitment to technological advancement suggest it is well-positioned to meet both domestic and international demand for high-quality railway products and steel.
Interpipe’s ability to step up in meeting the urgent needs of Ukraine’s rail industry highlights its critical role in the country’s industrial recovery efforts. By focusing on advanced manufacturing technologies and maintaining its investment in green steel, Interpipe is not only addressing immediate shortages but also positioning itself for long-term success in a rapidly changing global market. As the war continues to disrupt the region, Interpipe’s continued growth and adaptability will be key in helping Ukraine rebuild its industrial base and strengthen its position on the global stage.
