NIKOPOL PIVDENNOTRUBNY WORKS: OUTLOOKS FOR 2001
RESTRUCTURING PROJECT OF THE YEAR
RESTRUCTURING PROJECT OF THE YEAR
NIKOPOL PIVDENNOTRUBNY WORKS: OUTLOOKS FOR 2001
The year 2000 became a turning point for Nikopol
Pivdennotrubny Works (NPTW). To certain extent, its manufacturing performance was
stabilized, owing to UAH 100 million invested in its local workshops. In the near future
and together with the Swedish CETAB, the Works plans to launch a unique company engaged in
production of titanium tubes and titanium-based alloys, which would be the only CIS
producer of such items. Further plans of the Works relate to search for investors eager to
back its engineering infrastructure, modernization of operating machinery, and improvement
of technologies dealing with manufacturing output of high-liquid tube products.
In January 2000, the NPTW shareholders’ meeting
established four enterprises that currently use production facilities and assets of the
Works. Such business entities were launched on the basis of tube-rolling mill No. 7 and
exploration tube treatment shop No. 6 jointly with Interpipe company; tube-pressing shop
No. 4 and tube-drawing shop No. 2 with participation of YuVIS company; tube foundry with
participation of LLC Trubostal; and tube-drawing mill No. 1 jointly with LLC Stalprom.
In June 2000, Nikopol Pivdennotrubny Works accomplished the
first stage of its restructuring. Four business entities partially owned by domestic
investors managed to attract UAH 87.2 million invested in development of local workshops.
Along with this, successful introduction of restructuring measures improved certain
indicators of NPTW performance. In particular:
- manufacturing output of service tubing and
exploration tubes augmented by 340%;
- output of steel tubes drifted upward;
- the enterprise entered new markets including that of
Great Britain, France, Italy, Germany, and India;
- main production facilities were modernized for the
first time over the past 6-7 years;
- the enterprise launched production of hot-pressed
electrolytic-polished tubes, 95-159 mm in diameter;
- the enterprise restored manufacturing output of a
number of tubes that were not produced for the past twenty years;
- wages for 4,500 employees are paid with no delay;
- the enterprise managed to completely pay off the
existing indebtedness on wages accumulated over the past years;
- more than 1,000 additional working places were
established.
Program aimed at restructuring of Nikopol Pivdennotrubny
Works headed the rating established by Ukrainska Investitsiyna Gazeta (Ukrainian
Investment Daily) and became the top-rated Restructuring Project of the Year.
Successful completion of the first stage of restructuring
allowed to establish four companies operating with participation of domestic investors.
Thus, during the second stage of restructuring, the enterprise managed to attract foreign
investments.
In December 2000, the NPTW shareholders’ meeting made a
decision to establish another business entity on the basis of tube-welding mill No. 5 with
participation of CETAB company (Sweden). Experts believe that these measures will revive
hi-tech production in Ukraine and such enterprise will be the only CIS producer of
titanium tubes and titanium-based alloys.
Along with this, the second stage of restructuring to be
held in 2001 makes provision for further search of investors eager to uphold other
departments of the Works including its engineering infrastructure.
Our experience proved that absolute transparency of
restructuring and its maximal openness greatly contribute to establishing of long-term
mutually beneficial ties with investors. Thus, such principles back the current activity
of the enterprise aimed at attraction of new investors. The most promising propositions
relate to development of tool-making shop, tube-rolling shop No. 2., and power-generating
departments.
As regards production program, the enterprise combined its
efforts to augment the manufacturing output of hi-tech competitive products, namely,
service tubing, corrosion-resistant steel tubes, tubes made of titanium alloys,
high-pressure boiler tubes, and general-purpose rolled tubes. Besides, the enterprise
plans to introduce production of new service tubing, tubes for main pipelines, and drill
tubes.
Outlooks for 2001 stipulate further development of
technologies, which would result in boosted output of high-liquid tube products.
Four investment projects have been successfully launched.
In spring 2001, another business entity will be established with participation of the
Swedish CETAB. The Swedish company plans to invest some UAH 15 million to modernize
existing equipment and replenish floating assets.
Along with this, forthcoming completion of organizational
measures will lead to establishing of the closed joint-stock company on the basis of
electrical-repair shop. Besides, a number of subsidiary companies, including SC
Pobutservis, SC Tsentr Kultury I Otdikha, and SC Autotsentr, accomplish the latest steps
to be fully prepared for independent activity.