Ukraine-based seamless stainless steel pipe producer Centravis will place its Uzhhorod production facility into conservation mode, citing a sharp decline in expected exports to the EU following the introduction of the bloc's new steel import quota regime, according to local media reports.
The suspension will take effect from September 1, 2026, with employees remaining on payroll during the conservation period. The facility will be maintained in a condition that allows production to resume once market conditions improve.
EU quota changes expected to halve European sales
The decision was driven by the EU's new steel import protection measures, which entered into force on July 1, 2026 and significantly reduced tariff-free import quotas, while increasing the out-of-quota duty to 50 percent.
According to the company, the revised quota system is expected to reduce its sales to the European market by approximately 50 percent, making it impossible to fully utilize the capacity of both its Nikopol and Uzhhorod production sites.
The Uzhhorod plant was commissioned in 2023 after the company relocated part of its operations from the frontline city of Nikopol, where production has been repeatedly disrupted by Russia's military attacks. The facility currently employs around 130 people.
Company to consolidate production in Nikopol
Following the conservation of the Uzhhorod facility, Centravis plans to concentrate production at its Nikopol plant, despite the ongoing security challenges in the region.
The company said the Uzhhorod site was originally established to diversify production risks and maintain exports amid the war, but the deterioration in access to the EU market has made operating two production facilities economically unjustifiable.
