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07.02.2014

CENTRAVIS Operating Results and Key Achievements of 2013

Sales
In the context of global stainless steel tubes & pipes market stagnation during 2013 CENTRAVIS achieved the planned performance indicators, showing growth in all key markets.

Invoiced sales of finished products in 2013 increased by 12% year on year basis. Over 65 % of products were delivered outside the CIS. In 2013 CENTRAVIS continued planned implementation of the development strategy in high value added segments, among which nuclear power generation tubes are to be highlighted.

"Operating Results of CENTRAVIS prove the business development strategy focused on high value added segments and providing additional customer service. Despite some difficulties with sales to distribution business and own stock supplies in the midyear, we managed to achieve the targeted sales volume by refocusing to sales for project business. In 2014 we expect the Company will continue growth on key operating targets and reach the level indicated in the long-term business strategy," - Yuriy Atanasov, the CEO of CENTRAVIS PRODUCTION UKRAINE PJSC stated.

Certification
In 2013 the Company was certified according to NORSOK M-650 and ISO TS 16949.            NORSOK M-650 certification will strengthen the Company's position in SST Oil & Gas segment in the Scandinavia and the UK, as well as provide CENTRAVIS with an opportunity to participate in the key projects in this segment worldwide. ISO TS 16949 certification will expand the Company's presence in seamless stainless steel tubes & pipes supply to EU automotive industry. Additionally in 2013 CENTRAVIS obtained end-user approvals from: Foster Wheeler (Spain), Heurtey Petrochem (Global), Marathon (USA), Chevron Philips (USA).

Production Development
Major resources in this direction were focused on reduction of production cycles, increase of equipment reliability, increase of environmental efficiency.

New Products
Development of hot finished thin-walled tubes (OD 219mm / WT 6 mm, OD 168 mm / WT 3.5-4 mm, OD 159 mm in / WT 3.5-4 mm), mastering of production of hot finished tubes with longer length (up to 15 m) for petrochemical industry, in particular for cracking furnaces of refineries and ethylene / propylene production plants, as well as a significant expansion of U- tubes range (bending radii range) are to be highlighted.

Customer Service
Following the long term strategy CENTRAVIS continues development of additional service and customer interaction tools. Additional service for customers includes stock sales, supported by on-line tool to check product stock availability via corporate website, short lead times - due to production capacity reservation, technical advising, online quality certificate verification service, as well as other long-term cooperation programs. During 2013 Sales Engineers service was established with primary aim to provide support for key strategic products – tubes & pipes for nuclear and thermal power generation industry, instrumentation tubes for automotive and aerospace sector, tubes & pipes for oil & gas industry.

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