OREANDA-NEWS. On 03 March 2008 was announced, that Centravis holding, the leader in seamless stainless tube market, summarized its 2007 performance.

According to Mr. Yuriy Atanasov, CEO of CENTRAVIS holding, the company’s 2007 turnover made up US$ 250 M which was US$ 90 M better than in 2006. The holding EBITDA annual profit was US$ 40 M. The holding market shares in 2007 made up 70% in Ukraine, 42% in CIS countries, 9% in Western Europe.

As of 1 January 2008, the total number of the company employees has grown up to 2,600 people with more than 80% of them working at the CENTRAVIS PRODUCTION UKRAINE LLC production facilities in Nikopol, Dnipropetrovsk Oblast.

“Strategic goal of CENTRAVIS is to become a global player at the world market of seamless stainless tubes, with the Western culture of business practice and world standards of product quality and service. The past year, 2007, was emblematic to achieving our strategic goal. We held a total reorganization of our business accompanied by rebranding of the company, changes in the corporate structure, introducing new standards and launching a series of new projects. We expanded our production facilities by installing new equipment. We marshaled our commodity-money flows. We formed a highly professional international team of the top managers who are now a part of the company’s managing bodies”, said Yuriy Atanasov.

Mr. Vitaliy Lyutyk, CEO of CENTRAVIS PRODUCTION UKRAINE LLC, who was also present at the press conference informed that the total volume of the products manufactured in 2007 made up 17,000 tons. All products are distributed among the major product segments as follows: general tubes and pipes — 4%, heat exchanger tubing — 23%, boiler tubes -17%, instrumentation tubing — 9%, hollow bars — 7%, furnace tubes — 2%, Ni-alloy tubes — less than 1%.

CENTRAVIS PRODUCTION UKRAINE LLC is one of the five leading world producers of seamless stainless tubes. According to SMR (Steel&Metal Market Research) international research company annual report we are the number five company after Tubacex, Sandvik, DMV and Sumitomo Metals. At the same time we are the number one in the heat exchange tubing segment and the number three in the boiler tube one. We intend for future increase in seamless stainless tube production volumes in order to reach 32,000 ton mark in 2010. Achievement of this goal will allow us strengthening our arm at the global market. In order to increase our productivity, we’ve been installing new equipment. In 2007 we launched a new streamline in the cold drawing shop and we are installing a new extrusion press, force of 4,400 tons, in the hot-extrusion shop of the mill now”, said Vitaliy Lyutyk.

This intensive development would be impossible without massive investment. In 2007 US$ 42,5 M came invested in the production facilities of CENTRAVIS international holding. In 2008 the total volume of investment in production equipment and state-of-the-art technologies will be increased to US$ 120 M. Those monies will be raised mainly due to credits to be received from the Western banks, as well as due to in-house bond emission at CENTRAVIS PRODUCTION UKRAINE LLC for the sum of UAH 150 M. The primary bond allocation is planned for 31 March 2008.

According to forecasts, in 2008 the mill’s productivity will reach 20,500 tons, and CENTRAVIS holding turnover will make up US$ 287 M. The EBITDA profit is predicted to be about US$ 37,6 M.