05 Nov 2015

PJSC “Ukrstalkonstruktsiya” is focused on Poland market for export supplies

PJSC “Ukrstalkonstruktsiya” (Kiev), as most of domestic fabricators of steel, which orientate on Europe for export supplies, primarily is focused on Polish market", said CEO of PJSC "Ukrstalkonstruktsiya", Chairman of board of directors of Ukrainian Steel Construction Center (USCC) Vladimir Nosov.
  • PJSC “Ukrstalkonstruktsiya” is focused on Poland market for export supplies PJSC “Ukrstalkonstruktsiya” is focused on Poland market for export supplies

According to him it is due to local proximity of Poland to Ukraine, large volumes and good dynamics of Polish steel construction market, as well as the similarity of the principles of construction market development, except for the fact that Poland is in the matter ahead of Ukraine of about 15–20 years.

“Polish fabricators of steel constructions went the same way twenty years ago whereby Ukrainian companies are trying to go today. In the early 90’s Soviet Union as a huge market channels of steel structures for Poland closed. They had to reorient to other markets. Since Germany was geographically closest to the largest market to Poland polish fabricators tapped that market, and then continued exporting to the Scandinavian markets and other Western European countries. As a result, today, of the 1.3 million tons produced in Poland, all of steel construction of about 50% is exported, while the largest enterprises have this figure – up to 80% “, said V. Nosov in an online interview with USCC.

He noted, that PJSC “Ukrstalkonstruktsiya” also examines the markets of Germany and Scandinavian countries as potential consumers of products of PJSC “Ukrstalkonstruktsiya”, where for historical reasons metal share in the construction industry well above than in Southern Europe.

CEO noticed that Germany is the largest consumer market of steel structures in Europe, however, the most difficult from viewpoint of entry into this market. Since German customers not only make the highest demands on product quality and working conditions, but also choose a fabricator very long and carefully.

At the same time, when the choice is made, as a rule, build long-term relations. Generally European customers, especially German, are not interested in one-time deal, as a technical audit, inspection, certification, etc., are quite high and not paid dividends within the framework of the project.

Huge Spanish construction market is experiencing a problem today, and in countries such as England and France armored concrete occupies a large share that’s why the question of entering the markets of these countries is not a priority for the Ukrainian companies.
One of the most attractive from the post-Soviet countries for the Ukrainian fabricators of steel structures is Russian market but in light of recent events working on it is quite difficult.

“If we talk about Kazakhstan logistics difference in the delivery of Ukrainian steel structures is about $120–150 per ton compared with Russian structures. It takes toll on competitive ability of our companies in this market. Additionally Kazakhstan rapidly develops the import substitution program. It allows local businesses compete effectively with foreign suppliers especially in terms of public contracts “, accented the Executive officer.

According to him, the market of Belarus is not very big, but interesting in terms of working on large projects on modernization of production and infrastructure. We can note geographic proximity and positive attitude towards Ukrainian products which Belarusian customers consider as quality products. That’s a benefit of this market.

Georgian construction market is at such a stage of its development today when customers don’t make strict demands on product quality. That allows small local businesses to offer the market inexpensive steel structures. Welding of such structures often occurs on a building site. In addition by virtue of geographic proximity Turkish fabricators of steel structures are actively working on the market of this country.
“Nevertheless our products can be competitive and requested on a number of objects of infrastructure and energy industry. That’s why we believe this market quite prospective”, said CEO.

According to him, Polish steel structure market is about 1.3 million tons per year, the market of Germany is about 2.5 million tons. Russian experts of steel structure market are very optimistic about its volume of 3 million tons per year, but, according to Ukrainian experts opinion, it is about 1.5 million tons.

We remind that Ukrainian fabricators and builders of steel structures are looking for routes to export markets because of curtailing of consumption of steel structures in 2014–2015 in the internal market. Comparative low cost of production of steel structures, high value for money of products, high production possibilities and availability of raw material supplies base, and also economically advantageous location with main target markets are among their competitive positions.

Source: Interfax-Ukraine

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