ALFRED NOBEL UNIVERSITY, DNIPROPETROVSK THE DEPARTMENT OF INTERNATIONAL ECONOMY AND

ECONOMIC THEORY

Fursova K.D.

Scientific supervisor PhD in Economics, Associate Professor Magdich A.S.

Language consultant Senior Lecturer Medynska S.I.

FEATURES AND WAYS OF PRODUCTION EXPORT

EXPANSION OF JSC INTERPIPE NTPR

OUTLINE

1. The theoretical basis of production export expansion.

2. Analysis of the export activity of JSC Interpipe NTRP.

3. The ways of production export expansion of JSC Interpipe NTRP.

The objective of the present study is to develop proposals for the improvement of the export efficiency of JSC Interpipe NTRP due to the market reorientation from Russia to the Middle East and Africa (Mediterranean) as well as through the introduction of the "factory-consumer" logistic schemes of export production supply without unloading.

To fulfill the objectives of the study the following tasks have been set and accomplished:

to conduct theoretical analysis of the nature of economic efficiency of export activities;

to analyze export of JSC Interpipe NTRP; to identify the main problems in FEA of JSC Interpipe NTRP; to develop proposals for the improvement of the export efficiency of JSC

Interpipe NTRP.

Export strategy

is an essential component of your business plan;

is shipping commodities to other places or countries for sale or exchange. 

JSC Interpipe Nizhnedneprovsky Tube Rolling Plant (NTPR) (Dnipropetrovsk)

The analysis of liquidity and financial stability of the company revealed the

following problems:

constant deficit of the level of absolute and term liquidity;

the inability to pay for the purchases;

a sharp fall in the share price.

The logistic route of pipe export from Interpipe NTRP to Turkey by a railway-

ferry way without reloading

Comparative characteristics of export operation routesIndicator Route 1 (FOB – the port in

Ukraine – in the “roll-on/roll-off” freight cars)

Route 2 (CIF – the port in Turkey – in the “roll-on/roll-off”

freight cars)

Involved vehicles paid by the exporter

35 freight cars as 1 train 35 freight cars as 1 train, 1 ferry trip with cargo to Turkey and

return of the freight cars to Ukraine

Involved vehicles paid by the importer

1 ferry trip with cargo to Turkey and return of the freight cars to

Ukraine

Basis of delivery FOB - board of the ferry from Illichevsk to the port in Turkey

( Derince )

CIF – the port in Turkey (Derince ), the Sea of Marmara

through the Bosporus Strait

Export cost of the pipes on the basis of delivery

950 USD/t 1,050 USD/t

Net income from the export operations

4.9 mln. UAH 5.4 mln. UAH

Profitability of the export operations

31.3% 30.6%

Conclusion and recommendations

As the joint analysis of the results shows, export options 1 and 2 are almost equal in profitability so it is possible to use both options of pipe production export operations on the territory of Interpipe NTRP in freight cars to Turkey without reloading in the ports of the Black Sea.

Thank you for your attention