Interpipe ships new railway wheels to EU market

Ukrainian pipe and railway products manufacturer Interpipe has developed a new type of railway wheels for the European Union market for the first time since Russia invaded Ukraine, the company tells Kallanish.

The company has already shipped the debut, trial batch to the customer, it says. Interpipe started product development before the Russian-Ukrainian war and the main customer’s request was a special shape of the 840mm wheel. This is a category 2 wheel made of ER7 steel according to the European standard.

This product is designed for 1,435mm electric railway rolling stock. It can be installed on electric trains for ordinary long-distance transportation.

Ukrainian wheels will shortly be in use on the cars of the national railway network in one of the largest EU countries, the steelmaker says.

Interpipe decreased production in the first quarter due to the Russian invasion of Ukraine (see Kallanish passim). The company reduced steel production by 16% on-year to 163,000 tonnes. Pipe output declined by 12% to 97,000t and railway products by 43% to 23,000t. Product sales in Q1 fell by 10% to 140,000t.

Interpipe nevertheless saw revenue increase in Q1 by 19% on-year to $239 million. However, Ebitda declined by 63% to $15m. Net profit grew 6% to $21.8m.

On top of the loss of sales volumes and extra logistics costs due to the Russian invasion, financial performance was additionally affected by costlier raw materials and production inputs – scrap, electricity, and natural gas. These skyrocketed in Q1 by more than six times on-year, Interpipe said.

Earlier, Interpipe said its main strategic objectives are to increase production, to diversify its geographical presence and to expand presence of its products in the global market (see Kallanish passim). It also aims to supply its American customers again shortly, after the US suspended the 25% Section 232 duty on Ukrainian steel for one year.

Svetoslav Abrossimov Bulgaria