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“KHARTSYZSK PIPE PLANT” cuts costs due to efficient plant workers’ suggestions

4 June 2013

Specialists of KHARTSYZSK PIPE PLANT of Metinvest Group developed the concept of new-model-type plastic protector, which not only provides full protection of pipe bevel, but also compares favorably with metal one. With the substitution of metal protectors by plastic ones, the Enterprise only in May saved more than 23 thous. UAH.

New plastic protectors are multifunctional. Due to the corrugated surface, they can be fixed at any wall thicknesses. Their external part elongates, and internal one compresses through spring-elastic properties of the corrugation. As products are seamless, they do for any pipe diameter.

New protectors are almost 4 times less expensive than previously used ones. Another advantage of the new protectors is their light weight (about 1.8 kg). They are nearly three times lighter than metal ones, which had to be delivered to the installation site using a crane.

Today pipe shipment takes far less time than before: clamps and bandages used during the installation of metal protectors are not necessary, production fit for shipment directly from the stock. Furthermore incidents under the shipment are almost reduced to nothing, because new protectors crabbed to the pipe bevel safely.

“Current market apposes specific target, that is to meet customer’s requirements, - Pavel Uzbek, Acting Director General of PJSC “KHARTSYZSK PIPE” comments on. – “KHARTSYZSK PIPE PLANT” of Metinvest Group is customer-oriented enterprise, so we every day promote value creation for our customers, promptly implement initiatives to cut costs, save resources and to do mentioned we make the best use of plant employees. “KHARTSYZSK PIPE” effectively implements such program as “Lean enterprise”, plant workers’ ideas bring high economic benefit, and suggestion with protectors’ substitution is the eloquent evidence.

For editors:

PUBLIC JOINT STOCK COMPANY KHARTSYZSK PIPE PLANTis one of the largest enterprises in the CIS manufacturing longitudinal SAW large diameter pipes (508-1422 mm in diameter) with external anticorrosion and internal anticorrosion or flow coating for main oil and gas pipelines. Plant’s facilities permit to manufacture 1.3 mln. tons of pipes per year, including about 700 thous. tons of coated pipes.

The integrated Management System ensuring stable high quality of the products to the customers is functioning at                   “Khartsyzsk PIPE PLANT”. ISO 9001, ISO 14001, OHSAS 18001, API Spec Q1, DSTU ISO 9001, GOST R ISO 9001, STO Gazprom 9001 create its foundation. Products of the plant are certified according to API, EN standards and in the national system UkrSEPRO. Welding processes are certified as per ISO 3834-2.

2011 became the record year for “KHARTSYZSK PIPE” over the last 20 years for all production performance. More than 630 thous. tons of large diameter pipes were produced in January-December, 2011.

“KHARTSYZSK PIPE PLANT” became the first company among Ukrainian enterprises of Metinvest Group which started to            implement “Lean enterprise” program in September, 2010 and obtained tangible results.

Priority directions of social policy of PJSC “KHARTSYZSK PIPE” as forming enterprise are implementation of social programs and activities in the areas of education, health, improving urban infrastructure. In 2011, the amount of social investments companies totaled more than 1.3 million. UAH.

“KHARTSYZSK PIPE PLANT” is part of Metallurgical division of Metinvest Group.

METINVEST GROUP is a vertically integrated steel and mining group of companies, managing every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. The Group comprises steel and mining production facilities located in Ukraine, Europe and the USA and has a sales network covering all key global markets. Metinvest Group is structured into two operating divisions: Metallurgical and Mining Divisions and has a strategic vision to become the leading vertically integrated steel producer in Europe, and to deliver sustainable growth and profitability resilient to business cycles, providing investors with returns at above the industry benchmarks. The Group generated US$6.74 billion of            revenues and a 16% EBITDA margin for the first half of 2012.

The major shareholders of METINVEST B.V. (a holding company of Metinvest Group) are SCM Group (71.25%) and Smart-Holding (23.75%), partnering in the Company’s management.

METINVEST HOLDING, LLC is the managing company of Metinvest Group.

For additional information, please, visit http://pipe.metinvestholding.com/en

Contact person:

Victoria Liashenko  
Acting Head of Corporate Communications Department
+380 (6257) 59879