Engineering large-diameter pipes for a transforming energy landscape
Interview with Carsten Schmickler, Managing Director of EUROPIPE GmbH
Energy infrastructure is undergoing profound change – and with it the global pipeline business. EUROPIPE GmbH, a specialist for large-diameter steel pipes, operates in a market shaped by geopolitical shifts, new energy demands and complex project dynamics. Managing Director Carsten Schmickler discusses how the company is strengthening its position worldwide, increasing agility and navigating the challenges of transformation.
European Business: Mr. Schmickler, EUROPIPE has a long industrial heritage. How has the company developed?
Carsten Schmickler: EUROPIPE was founded in 1991 as a joint venture between Salzgitter and Dillinger, but the site in Mülheim has over 100 years of pipe production history. Over time, the company underwent major restructuring due to overcapacity: French plants were closed and US activities were sold. After large projects such as Nord Stream 1 and 2, for which EUROPIPE supplied several thousand kilometers of pipes, the market weakened and the company was resized. Today, we focus on large-diameter steel pipes starting at 610 mm up to 60 inches, mainly for gas, increasingly for hydrogen and future CCS applications.
European Business: How would you describe the current market environment?
Carsten Schmickler: Our market is highly political and volatile. 2021 and 2022 were real game changers, with major projects in Mexico and Australia, the disappearance of Russian competitors after the war in Ukraine and reduced capacity in Japan, while other markets such as Iran vanished. Currently, the USA is our strongest market, driven by LNG investments, aging infrastructure and rising energy demand, for example from AI data centers. Even with tariffs of around 50%, we are performing well there, as local competitors are fully booked. In Europe, hydrogen and CCS remain important but are progressing more slowly due to regulatory hurdles and limited hydrogen availability.
European Business: What are the key figures of EUROPIPE today?
Carsten Schmickler: Together with our coating subsidiary at the site, we employ around 520 people in a one-shift model and can scale up to around 900 employees in a two-shift system. Revenue is project-driven and ranges between roughly EUR 400 million and just under EUR 1 billion. At full capacity, we produce up to 800,000 t per year, equivalent to around 1,800 km of pipes.
European Business: How is management structured, and what have been your priorities since joining?
Carsten Schmickler: EUROPIPE has two shareholders and two managing directors. My colleague is responsible for operations, HR and IT, while I focus on market, finance, and supply chain. I joined the company in early 2024, and since then our main priority has been to increase speed and make the organization more agile in both decision-making and execution.
European Business: What does agility mean in practice for your company?
Carsten Schmickler: It means being able to adapt quickly while remaining stable. We have optimized our cost structure so that we can operate profitably even in a one-shift model. Together with the union, we introduced flexible working time accounts of up to 192 negative hours. In projects, agility becomes very tangible: for example, we implemented a solution for 24-m pipes for the US market within a few months, including complex partner and logistics coordination.
European Business: Who are your customers, and what sets EUROPIPE apart?
Carsten Schmickler: Our customers include transmission system operators such as OGE, Bayernets and Terranets, as well as international energy companies like TC Energy, Shell and Total and EPC contractors. In some regions, for example South East Asia, we work via trading partners rather than our own sales structures. What sets us apart is flexibility, reliability and capacity. Our access to raw material via our shareholders ensures supply security with high quality steel plates gives us a clear advantage in large-scale projects, for example in Alaska.
European Business: How do you position yourselves as an employer?
Carsten Schmickler: Our location in the Ruhr region gives us access to a strong industrial labor market. While some specialists, such as experts in non-destructive testing, remain difficult to find, we benefit from industry shifts, for example after the closure of a Vallourec site. We offer attractive collective agreements and above-average pay. At the same time, many employees value contributing to major infrastructure projects and the energy transition.
European Business: What role do sustainability and political conditions play?
Carsten Schmickler: Sustainability is essential, but it creates cost challenges in global competition. Around 97% of the CO2 footprint of a pipe comes from the steel plate, so our influence is limited. In many export markets, CO2 footprint is not yet decisive. At the same time, we are working on lower-carbon solutions such as our ‘Carbon Light’ approach, already used in projects with customers like OGE, which can reduce the CO2 footprint up to 70% of the pipe, albeit with additional costs of around 10%. We therefore see a clear need for stronger European framework conditions, including protection against low-cost imports and competitive energy prices.
European Business: What are your strategic priorities for the coming years and what motivates you personally?
Carsten Schmickler: We are expanding our portfolio, for example with GRP coating and additional coating technologies such as concrete coating for offshore applications. We are also strengthening our market presence outside Europe. Digitalization is another key focus: we are building digital twins of production processes and using data and AI to optimize machine settings. At the same time, we take a pragmatic approach – AI is a tool, not an end in itself, and in some cases it makes sense to wait as solutions evolve rapidly and become more efficient. I have spent around 30 years in the steel industry, and I am still fascinated by it. What motivates me is shaping EUROPIPE’s transformation into a faster, more agile company and securing its long-term success in a challenging global market.