Serbia’s Utva Silosi AD Kovin has signed a significant agreement with Italian technology firm Danieli for the installation of an electric resistance welded (ERW) pipe production line at its facility in Kovin. This initiative aims to bolster the company’s position within the European steel value chain by upgrading both capacity and technology.
The new production line is designed to cater to high-value industrial sectors, specifically focusing on structural and automotive-grade tubing that demands precision and consistency. It will produce pipes with outer diameters up to 50 mm and wall thicknesses reaching 3 mm, targeting applications that require stringent tolerances and elevated quality standards.
Operational efficiency is a key focus of this project, with the production line expected to operate at speeds exceeding 160 metres per minute. This will be facilitated by advanced automation systems that are intended to enhance productivity and ensure consistent quality across production runs.
From a technical perspective, the installation will feature a continuous coil feeding system utilizing a double-mandrel decoiler along with strip joining technology, which allows for uninterrupted processing—a vital factor in modern tube manufacturing. The welding process will employ a state-of-the-art high-frequency system, complemented by specialized forming and sizing equipment capable of producing round, square, and rectangular profiles.
Additionally, the line will include integrated non-destructive testing (NDT), high-precision cutting through a flying saw, and automated packaging systems. These features reflect a broader trend towards fully integrated, digitally controlled production environments typical of Tier-1 European steel processing facilities.
Currently in the design phase, the project is set for commissioning in the first half of 2027. This timeline aligns with regional trends emphasizing industrial upgrades and supply chain nearshoring throughout South-East Europe.
Strategically, this investment positions Utva Silosi to diversify its offerings beyond traditional tube production into more lucrative segments such as automotive and precision engineering supply chains. It also strengthens Danieli’s presence in the Balkans, where there is an increasing demand for modernized steel processing infrastructure that meets EU-aligned industrial standards and enhances export competitiveness.
In the context of Serbia’s industrial landscape, this move signifies a gradual transition towards technologically advanced manufacturing capabilities, where factors like productivity, automation, and product quality are becoming essential competitive differentiators rather than mere volume.
