OREANDA-NEWS. January 18, 2007. Last year, Engels Pipe Plant broke into the Billionaires club, having overcome a billion milestone, based on 2006 sales. The company intends to increase the indicator of up to RR1.4 bn next year.

Engels Pipe Plant is one of the leading, stable and promising enterprises of the region which develops alongside with the rapidly growing metal market. Engels Pipe Plant was awarded numerous prizes and diplomas both in Russia and abroad.

High quality and wide range of manufactured pipes, their reliability and long operating life enables the plant to successfully compete with its counterparts on the market, says Yuri Gordeyev, managing director at the plant.

The plant has extended its geographical cover, which includes Saratov region, Moscow, Samara, Rostov, Taganrog, Bashkiria, Ural regions. Steel pipes are in great demand across Russia: neither construction, gas and oil industries, nor utility companies can do without them.

A recipe for success is that the plant is equipped with advanced equipment, and, which is more important, it has strong engineering and technical personnel able to practically solve challenging production, technological and structural tasks. Today, the plant’s headcount comprises 450 employees, with the average salary of 11.5 thousand rubles. Moreover, it grew by more than 20% y-o-y. In 2008, the salaries will grow by at least 18%. According to the plant’s plans, the number of employees will reach 1,000 people by 2010, which means creation of 500 jobs in the next 2 years, with regard to population of the Engels municipal district. The plant intends to achieve such indicators due to expansion and upgrade of its production facilities. Investment budget of the enterprise for 2008 will exceed RR50 mn. The funds will be allocated for overhaul of shops and upgrade of equipment, which will allow to increase output and range of products, Yuri Gordeyev said. The management has ambitious plans in respect of production development, which primarily involve implementation of cutting-edge technologies and mastering new types of products. This will add value to the enterprise and help it to gain more flexibility in its market segment, clarifies Mr. Gordeyev. Last year, the plant mastered production of shaped pipes used as structured steel in construction of residential and non-residential dwelling stock. Their main advantage is that these pipes are lighter and cheaper than usual channels and I-beams. Oval-shaped pipes made of cold roll steel are essential for the furniture industry. The enterprise’s prospects for the period until 2010 include commissioning of a new line for production of stainless pipes and shapes used in nuclear energy, medical and food industries. EPP also plans to put into operation a tube-rolling mill producing tubes of up to 325 mm in diameter for oil and gas industry, as well as large shapes of up to 250 mm. Among the top priorities of the Engels Pipe Plant is quality assurance policy pursued by the plant. The plant holds certificates for all manufactured products in compliance with Russian state standards. High quality is also ensured by existing quality assurance system applied at the plant which meets requirements of international ISO 9001-2000 and GOST-R ISO 9001-2001, certified by the register of State standard quality systems and TЬV CERT, a German certification body. It is evident that successful enterprise cannot but take care of the standards of living of its employees. Management of the pipe plant pays great attention to its social policy. The employees save up by making monthly allocations to a non-state pension fund. Upon retirement they collect these funds, with the amount to be doubled by the plant. Free dental office and physiotherapeutic room equipped with modern equipment are open at EPP. There is a transport fleet at the plant that helps bringing all employees to work. The plant has its own coffee shop and canteen. Saratov region authorities and Engels Pipe Plant signed a cooperation agreement for 2008, under which the plant will implement social and charity programmes in the region. In 2007, EPP repaired an access road in the city and was one of the main sponsors of the City anniversary celebrations. “We’ve got much to do to master new types of products and to build up output. I hope we will successfully deal with the tasks”, says Yuri managing director of the plant Gordeyev about the short-term goals.

NT reference

ZAO EPP has been operating since 1973, when Engels experimental mechanical plant for repairing tractors and reclamation engineering for the ministry of land reclamation was founded. In 1992 the enterprise was converted in a closed joint-stock company Engels Pipe Plant. In 1995 it was awarded a Birmingham Torch, American business award granted for successful economic survival and development during social and economic crisis. In 1996 the plant was awarded a title of “The largest importer in Saratov region”, as well as the “Diploma of reliable partner” conferred by the regional chamber of commerce and industry. In 2007 the plant was entered in the Roll of honour of the city. In 2003, products of the plant – rectangular and square pipes – were awarded laureate diplomas at the programme “100 Best Russian Products”. In 2007, based on the results of “100 Best Russian Products” contest, steel electric welded pipes were awarded diplomas. In 2005 EPP joined a pipe division of the metallurgical holding ESTAR group of companies, which unites different enterprises in Novosibirsk, Chelyabinsk, Volgograd, Saratov, Kemerovo and Rostov regions, Perm Territory engaged in production of metal products, a scrap collection company and a trading house, which deals with sales.