Interpipe JV with Vallourec reaches full capacity load

Vallourec Niko Tube, a joint venture between Ukraine’s
largest pipe producer Interpipe (INPIP) and Vallourec (VK FP), reached its full
design capacity load, according to a June 18 news report by Interfax-Ukraine
that cited Interpipe’s press release. The capacity amounts to 170 kt of
seamless pipes per year, according to Interpipe’s CFO, Denis Morozov, who spoke
at a public presentation and press conference on June 18, as reported by
Interfax-Ukraine.

The JV was launched in 2H18and comprises two finishing lines that process pipes produced at Interpipe Niko
Tube and Interpipe NTRP. The JV’s products (comprising line pipes, general
purpose pipes and pipes for machine building, but excluding pipes for
hydrocarbon extraction) will be sold in Europe under Vallourec’s brand.

Interpipe will benefit from the JV via increased
production volumes, improving quality, technical expertise, and strengthening
its positions at European markets, the company’s press release said.

Dmytro Khoroshun: The news is positive for Interpipe’s operations and finances. However,
the company might again delay the restructuring of its debt past its most recent June 30 deadline.