Interpipe, a prominent Ukrainian steel manufacturer, has demonstrated remarkable resilience amid the ongoing war by investing $83 million in enhancing product quality and expanding production lines. Despite being located just a few kilometers from the front line, with its Nikopol plant under constant shelling, Interpipe continues to operate and develop new capabilities. This investment, aimed at maintaining competitive production standards, was highlighted by Aleksandr Garkavij, the Director of Interpipe’s Railway Products Division, during a speech at the 55th World Economic Forum in Davos.
Interpipe's Resilience Amid Conflict
Operating in such a hostile environment has not deterred Interpipe from investing in its operations. Since the onset of the war, the company has directed substantial funds into product quality and new manufacturing lines. This includes initiatives at their Nikopol facility, which remains located near the frontlines of the conflict, roughly 7 kilometers from the Zaporizhzhia Nuclear Power Plant. Despite the ongoing shelling and proximity to military positions, Interpipe continues to meet its customers' needs, ensuring its products are of high quality and ready for shipment.
The company faces numerous challenges, including staff safety amidst active shelling, recruitment difficulties due to mobilization efforts in Ukraine, and a lack of wartime risk insurance. However, Interpipe has adapted by creating mobile concrete shelters for workers and collaborating with universities, vocational schools, and veterans to fill workforce gaps. They have also found innovative solutions to continue delivering products on time, including establishing remote technical audits for international clients who are restricted from visiting Ukraine.
Interpipe’s Commitment to Sustainability
A key feature of Interpipe’s commitment to long-term sustainability and innovation is its electric arc steelmaking complex, Interpipe Steel, which was completed 13 years ago. This was an early move towards industrial decarbonization when no one was focusing on the environmental impact of steel production. The investment of $1 billion into this complex was the largest environmental investment in Ukrainian industry since the country gained independence. Interpipe's environmental efforts have positioned it as one of the most effective producers of railway products, significantly reducing CO₂ emissions in the process.
Product Range and Global Reach
Interpipe operates as a vertically integrated company, managing all stages of steel goods production. From sourcing and processing ferrous scrap to producing steel pipes, wheels, axles, and wheelsets, Interpipe’s products are critical to industries such as railway transportation and energy. The company serves clients in over 83% of its total sales globally, with a significant share of its market in Europe. Notably, Interpipe wheels are used in two out of every three freight railcars in Europe, which highlights its strong presence in the global transportation sector.
The company's clients include major rolling stock builders and railway operators like Alstom, Greenbrier, Deutsche Bahn, and Tatravagonka, who rely on Interpipe’s high-quality products for their operations.
Looking Ahead: Confidence in Ukrainian Innovation
Despite the ongoing challenges, Aleksandr Garkavij expressed confidence in Interpipe’s future, underscoring its strong track record as a reliable supplier. He urged the international community to continue believing in Ukrainian companies, emphasizing their ability to deliver quality products even under extreme conditions.
With $83 million invested in improving production capacity and quality, Interpipe is committed to contributing to Ukraine’s and Europe’s economic recovery, offering hope and a model of resilience for businesses operating in conflict zones.
Interpipe continues to stand as a testament to the strength and innovation of Ukrainian industry, even in the face of war, making vital contributions to global markets and advancing industrial sustainability through its innovative technologies.
