Interpipe wins tender for wheel sales in Ukraine

Ukraine’s largest pipe and railway wheel producer
Interpipe (INTHOL) won a tender for supplying about 1.75 kt of wheels to
Ukrainian Railways (RAILUA), according to a June 15 disclosure in the ProZorro
e-procurement system.

Interpipe NTRP offered to supply the wheels for the
total of about USD 4.2 mln (excl. VAT), marginally lower than the only other
competitor, MS Trade Ukraine LLC, which offered wheels produced by
Prommashkomplekt, a plant in Kazakhstan. The wheels will be supplied by the end
of 2021, according to the tender documentation.

Recall, earlier in June the media reported that Interpipe won a court case against the
Antimonopoly Committee of Ukraine (AMCU) in relation to the participation of
certain Interpipe group companies in public procurements for railway wheels.

Dmytro Khoroshun: The price
realized by Interpipe at this tender is high, which is positive, but the volume
is small.

The price for wheels to be sold in relation to this
tender is about USD 2,400/t, or 57% higher than the average price achieved by
Interpipe for all its railway product sales in 1Q21, USD 1,529/t, we calculate.
The 1.75 kt volume to be sold by Interpipe in relation to this tender is only
4% of the 39 kt of railway products sold by the company in 1Q21.