The investment projects aims to develop capacities for mechanical engineering of the railways wheels, making of a more complex works, as well as producing of wheel assemblies.
The company expects not only to increase exports with a help of the new technology, but also plans to capture new niches of the market such as train high speed wheels, and wheel assemblies for freight rail transport. Denis Morozov, the CFO of Interpipe informed that lately rail and railway-related products of the company were sold mainly in Ukraine. But the sales in real terms contracted from 131 000tons in 2011 to 14 000tons evidencing the factual cease of carriage building and minimum levels of demand from Ukrainian Railways.
Those problems changed the priorities for investments. The new markets for wheels, center shafts, and wheel assemblies became America and the European countries. At this, domestic market may benefit of them too. In practice, the production facility may supply for high speed trains Intercity and domestic freight rail transport. The facility is located in Nizhnedneprovsk.
