The Ukrainian industrial company “Interpipe” has announced that it does not plan to relocate production or reduce the volume of pipe products manufactured at its facilities in Ukraine in favor of the new Interpipe Roman plant in Romania. This was stated by the company’s CEO, Luca Zanotti, in an interview with a specialized publication.
This is reported by Finway
Development Strategy: Ukrainian Capacities Remain Key
According to Luca Zanotti, Interpipe’s production base in Ukraine is the foundation of the company’s industrial strategy. It combines pipe rolling capacities with a technological complex for the production of railway products, and replicating it in another country would be extremely difficult and costly. This defines the unwavering priority of Ukrainian enterprises for the company’s further development.
“First and foremost, I must emphasize that after this purchase, ‘Interpipe’ has no intention of relocating production or reducing the volume of output at our plants in Ukraine in favor of the Romanian one. Our production base in Ukraine, where alongside pipe rolling capacities we have a technological complex for the production of railway products, is the foundation of our industrial strategy, and replicating it would be extremely expensive.”
New Plant in Romania: Opportunities and Prospects
Following the acquisition of Interpipe Roman, production at this Romanian facility has already been resumed. The company has focused on increasing the supply of semi-finished products to ensure the operation of the plant, while the volumes of rolling and processing of finished products will depend on market demand.
Luca Zanotti clarified that Interpipe Roman has three pipe rolling mills, but recently only one of them has been operational. The company plans to restore production to previous levels, according to a business plan, which will allow for more efficient use of existing capacities.
According to the CEO, the acquisition of the plant in Romania has several strategic reasons. Firstly, the Romanian asset perfectly complements the steelmaking business of the company, as “Interpipe” has underutilized steel production capacities in Ukraine. This will allow for supplying the pipe-rolling equipment in Romania with raw materials from Ukrainian enterprises.
The second reason was the desire to increase production flexibility due to the destabilization of global trade. Presence in different geographical regions enables a quicker response to customer needs. Moreover, this move is important for expanding the company’s presence in the European market and provides a backup option in case of difficulties arising in Ukraine.