Serbia-based Utva Silosi AD Kovin has moved to strengthen its position in the European steel value chain, signing an agreement with Italian technology provider Danieli for the supply of a new electric resistance welded (ERW) pipe production line at its Kovin facility.
The investment marks a capacity and technology upgrade aimed at higher-value industrial segments, particularly structural and automotive-grade tubing, where precision and consistency are critical.
The new ERW mill will be designed to produce pipes with outer diameters of up to 50 mm and wall thicknesses reaching 3 mm, targeting applications requiring tighter tolerances and higher quality standards.
Operational performance is a central element of the project. The line is expected to run at speeds exceeding 160 metres per minute, supported by advanced automation systems intended to ensure both productivity and repeatable quality across production batches.
From a technical standpoint, the installation will incorporate a continuous coil feeding system using a double-mandrel decoiler and strip joining technology, enabling uninterrupted processing—a key efficiency driver in modern tube manufacturing. Welding will be carried out using a latest-generation high-frequency system, paired with dedicated forming and sizing equipment capable of producing round, square and rectangular profiles.
Downstream, the line will be equipped with integrated non-destructive testing (NDT), high-precision cutting via a flying saw, and automated packaging systems, reflecting a shift toward fully integrated, digitally controlled production environments typical of Tier-1 European steel processing assets.
The project is currently in the design phase, with commissioning scheduled for H1 2027, aligning with broader regional trends of industrial upgrading and supply chain nearshoring across South-East Europe.
Strategically, the investment positions Utva Silosi to expand beyond conventional tube production into higher-margin segments, particularly automotive and precision engineering supply chains. It also reinforces Danieli’s footprint in the Balkans, where demand for modernized steel processing infrastructure is increasingly tied to EU-aligned industrial standards and export competitiveness.
Within the wider Serbian industrial landscape, the move reflects a gradual shift toward technologically advanced manufacturing capacity, where productivity, automation and product quality—not just volume—are becoming the primary competitive drivers.
