Expanding the product portfolio helps us find new niches and maintain a competitive position, says Vitaliy Sueta, Interpipe’s Director of Products and Resources. In an interview with UAprom, he discussed the company’s plans to develop a line of pipes for the green economy and grow in the passenger wheel segment. PromPolitInform reports.
What is the company’s product strategy? You recently mentioned your desire to develop a product line in market niches emerging due to the decarbonization trend. Please tell us about your plans in this area.
Interpipe is moving toward expanding its product portfolio and developing unique solutions. We are constantly seeking new segments and working on developing complex products, as this approach will help us gain greater added value and create a competitive advantage, distinguishing us from standard products offered in China.
In particular, we have identified several promising areas for pipe production. These are geothermal pipes, which are most commonly used for heating systems in European countries. We are also exploring the development, production, and market entry of pipes for the construction and maintenance of carbon capture storage facilities, as well as for hydrogen production and transportation infrastructure. Construction of pipelines around these facilities will require pipes with specific requirements for the steel’s chemical composition and physical properties, and this could be a promising development for Interpipe.
What markets are you targeting, and what production volumes are we considering?
Decarbonization is a trend that is having a significant impact on the market in the European Union. In the US, for example, the construction of carbon storage facilities is not even discussed at a serious level. But even in Europe, the green products market is still in its infancy, making it difficult to measure.
At this stage, development and growth depend on a number of factors: from the regulatory framework to the volume and speed of investment in hydrogen production projects and the willingness to invest in the construction of carbon storage facilities. While hydrogen projects are generally trending positively, carbon capture and storage (CCS) capacity has a longer-term outlook. Several projects have been built in Scandinavian countries, and the majority are in the design phase.
Spot purchases can be observed in individual projects. However, this is not yet systematic and large-scale construction. It is still unclear what the actual investment in these and similar projects will be. Much will also depend on the sustainability of decarbonization policies in Europe. If the “green” agenda changes, the market size will also vary significantly.
The situation with geothermal pipes is clearer. The total volume of this market in Europe is approximately 50,000 tons, and we see a growth trend with potential to reach 80,000-90,000 tons, particularly in Germany.
It is important to note that we plan to develop all products with a focus on EU trade policy. If Brussels decides to reduce import quotas for metal products, including for Ukraine, this will significantly limit our operations. In this case, we will determine target sales volumes for these products within the quotas we are granted.
Will developing this area require additional investment?
We believe that developing these product segments will not require significant additional investment, other than R&D costs. We already have all the technical capabilities, including thanks to the modernization of the heat treatment department at our pipe production facility in Nikopol, where we have invested approximately $40 million. Therefore, we plan to work on mastering and certifying these capabilities in 2026-2027, in order to further enter the market with finished products.
In fact, we already produce some types, such as geothermal pipes, and are expanding our geographic sales coverage. Several manufacturers already have similar products for hydrogen pipes. Therefore, we simply need to develop our product using the available capacity and certify it. CCS (Carbon Capture) pipes, however, are a completely new development. Their production is still being mastered, and this process may be more complex than with hydrogen pipes, as this product requires non-standard steel, the selection of rolling and heat treatment conditions. We will consider specific specifications.
You mentioned plans to further expand your product portfolio. What other niches are you planning to explore?
In the pipe segment, we are working on products for nuclear power generation, primarily boiler pipes. Another large product group is pipes for oil and gas drilling in sour environments, which Interpipe does not yet have in its portfolio. Due to the specific geology and climate, such pipes are in demand in Canada and the US, Europe, and the Middle East, but we are primarily focusing on the North American market.
A separate area is drill pipes, which are essentially the components of oil and gas production wells. These products differ significantly from the range we offer to customers, particularly casing and tubing. Developing these products will require additional investment from the company. Accordingly, this project is currently under management review, and we are moving toward confirming the necessary investments and commencing work. This involves supplementing the existing production configuration with additional equipment, so the costs are not significant on a company-wide scale. For example, we already have new additional equipment for tubing, which can also produce drill pipe bodies. However, to establish full-scale drill pipe production, we will need to invest approximately $3-4 million in a separate finishing machine for pre-welding special tool joints.
What are Interpipe’s development plans in the rail segment?
For the past 10 years, we have been working to establish a foothold in the European freight wheel market, and the company has consistently been a key player in this segment under the KLW brand.
The company’s primary focus and strategy is on the passenger segment, where more stringent requirements apply to wheel geometry, mechanical properties, and design.
Passenger wheels vary depending on the type of car and speed rating. Medium-speed trains (120-160 km/h) have different requirements than high-speed trains (up to 220 km/h and up to 330 km/h). Requirements for metros and trams can differ significantly.
Therefore, to expand its product portfolio in the passenger segment, Interpipe is already implementing an investment program, which the company presented at the Ukraine Recovery Conference 2025 in Rome, to modernize and expand wheel and wheel set production through 2032, totaling $120 million.
The main projects include the construction of a new heat treatment line, expansion of wheel and axle finishing capacity, and modernization of workshop infrastructure at Interpipe NTRP in Dnipro. Furthermore, each stage of modernization will have a strong environmental component: from reducing CO2 emissions to improving energy efficiency across all our operations, which will strengthen our export position thanks to a new level of quality. Developing new niches will also require significant effort from the Interpipe team to qualify our products with key operators and car manufacturers. This is a complex process that can take three to five years.
As far as we know, Interpipe already has separate contracts for the supply of wheels specifically for passenger transportation with companies such as Alstom and Siemens.
For example, we have already supplied small volumes to Alstom in India and other projects, as well as for Siemens trains serving urban transportation. We have supplied wheels for many urban projects around the world, such as the Chicago subway, and collaborated with Deutsche Bahn.
However, the share of passenger wheels in Interpipe’s railway product sales is still very small, and to increase it, we need to modernize our production facilities. We expect that with our planned investments, we will be able to grow in the passenger wheel segment, primarily in the European Union, as it is our home market.
