Utva Silosi to add Danieli ERW pipe line in Serbia, targeting higher-value tubing

Utva Silosi AD Kovin is stepping up its manufacturing capabilities in Serbia with a new investment aimed at moving further up the European steel value chain. The company has signed an agreement with Italian technology provider Danieli for the supply of an electric resistance welded (ERW) pipe production line at its Kovin facility, reflecting a broader push toward more automated and higher-spec industrial output.

Capacity and product focus

The planned ERW mill is intended as both a capacity and technology upgrade, targeting higher-value industrial segments where precision and consistency matter. Utva Silosi said the line will be designed to produce pipes with outer diameters of up to 50 mm and wall thicknesses reaching 3 mm, aimed at applications that require tighter tolerances and higher quality standards.

Speed, automation and welding technology

Operational performance is central to the project. The production line is expected to run at speeds exceeding 160 metres per minute, supported by advanced automation systems designed to maintain productivity while delivering repeatable quality across production batches.

On the technical side, the installation will use continuous coil feeding through a double-mandrel decoiler and strip joining technology to enable uninterrupted processing. Welding will be carried out using a latest-generation high-frequency system, complemented by dedicated forming and sizing equipment capable of producing round, square and rectangular profiles.

Quality control and integrated downstream equipment

The scope also includes downstream systems intended to support fully integrated, digitally controlled production. The line will feature integrated non-destructive testing (NDT), high-precision cutting via a flying saw, and automated packaging systems—components that align with modern Tier-1 European steel processing practices.

Timeline and strategic implications

The project is currently in the design phase, with commissioning scheduled for H1 2027. Utva Silosi positioned the investment within regional trends of industrial upgrading and supply chain nearshoring across South-East Europe.

Strategically, the upgrade is meant to help Utva Silosi expand beyond conventional tube production into higher-margin segments, particularly automotive and precision engineering supply chains. It also strengthens Danieli’s presence in the Balkans as demand for modernized steel processing infrastructure increasingly ties into EU-aligned industrial standards and export competitiveness.

Within Serbia’s wider industrial landscape, the move underscores a gradual shift toward technologically advanced manufacturing capacity where competitive advantage increasingly depends on productivity, automation and product quality rather than volume alone.