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ChelPipe Group Announces Operating Results for 2019

Steel News - Published on Fri, 14 Feb 2020

Image Source: Chelpipe
Chelyabinsk Pipe Rolling Plant announced its operating results for the 12 months ending December 31, 2019. ChelPipe Group Pipe and tube division CEO Mr Boris Kovalenkov said “In 2019, ChelPipe Group delivered robust growth in shipments of tubular products. The Company strengthened its position as the largest LDP manufacturer in the Russian market while also continuing to expand its international presence, with exports hitting a 25-year high. In response to increased competition, ChelPipe Group is taking a number of steps to boost operational efficiency and put the customer at the heart of the transformed business model, in line with the Company’s 2024 strategy. Over the next five years, we will focus on strengthening our customer proposition, primarily in the high added value segments; developing services and integrated engineering solutions; a smoother customer experience; and diversifying our sales channels. Delivering in these areas will give us a significant competitive edge over our Russian and international peers, and strengthen ChelPipe Group’s appeal as a long-term partner for our clients.”

FY 2019 highlights

In FY 2019, ChelPipe Group shipped a total of 2,070 kt of pipes to customers (up 8% YoY)

A key growth driver was an increase in export shipments to 736 kt, or 36% of all shipments

Shipments to the Russian market totalled 1,334 kt

Large-diameter pipe shipments reached 916 kt (up 33%), strengthening ChelPipe Group’s position as the largest LDP manufacturer in the Russian market

Oil country tubular goods shipments increased by 3% to 469 kt

Shipments of pipes with ChelPipe Prime threaded connections rose by 23%, driven by stronger demand from Russian customers

Shipments of trunk pipeline division products increased by 17% to 21.3 kt

Sales of tubular products through the online store increased by 160%

Shipments by product
kt, unless otherwise specified Q4'19Q4'18YoY20192018YoY
Seamless industrial pipes100150-33%498562-11%
OCTG 111127-13%4694543%
Line pipes (O&G)512790%152180-16%
LDP21785157%91668833%
Other welded pipes9570%35327%
Total48939424%207019168%
 


Shipments by production site:
kt, unless otherwise specifiedQ4'19Q4'18YoY20192018YoY
Stamp-welded pipeline parts1.41.7-18%6.15.86%
Bends and other products6.63.1-112%15.212.422%
 


Outlook for 2020 - ChelPipe Group expects robust demand for pipe products from both Russian and international customers. Volumes are expected to remain flat vs 2019. The Company will focus on further delivery against its strategic priorities of improving operational efficiency, enhancing the customer experience and streamlining the customer proposition, as well as gradually gaining market share in adjacent segments and entering new geographies.

Source :

Posted By : Yogender Pancholi on Fri, 14 Feb 2020
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