One of Georgia’s largest metallurgical enterprises, "Rustavi Steel", might soon exit the rebar business. The company is considering selling its rebar production capacities as it shifts its focus toward the more profitable seamless pipe segment, which is primarily aimed at export markets.
In an exclusive interview with BMG, Rustavi Steel’s General Director, Igor Koritko, said that while no final decision has been made, rebar production has become “less interesting” for the company.
“Historically, our share in the local rebar market was about 25%, but now it is less than 20%. That is absolutely comfortable for us, because the margin on one ton of seamless pipes is three times higher than on rebar. This is why we are considering selling the rebar direction,” Koritko explained.
According to him, rebar production in Georgia largely serves the domestic market and experiences cyclical fluctuations, whereas seamless pipes have strong demand abroad and generate higher added value.
Koritko emphasized that "Rustavi Steel’s" priority under the new management team is to expand seamless pipe production and boost exports to global markets.
“Until 2023, "Rustavi Steel" mainly focused on rebar. Now we see greater opportunities in seamless pipes, which have a much stronger export potential. This is the direction we intend to strengthen,” he noted.
Rustavi Steel currently operates three main workshops, a steelmaking unit, a rebar (fittings) production line, and a pipe production unit. According to Koritko, the rebar workshop can be “easily distinguished” and could therefore be separated if a sale is finalized.
Rustavi Steel, the largest metallurgical plant in Georgia, has been under new management since December 2024. Igor Koritko replaced Nugzar Kachukhashvili as General Director, while Andrey Parkhomchuk joined as Deputy Director.
