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Health, Safety and

Environment Report
2009 | 2010
Quality, Health, Safety and Environment Policy
Tenaris aims to achieve the highest standards of Quality, Health, Safety and Environment,
incorporating the principles of sustainable development throughout its operations.

www.tenaris.com
Health, Safety and Nothing is more important than the health and safety of everyone who works for us and
uses our products
All injuries and work-related illnesses can and must be prevented

Environment Report Management is responsible and accountable for health and safety performance
Employee engagement and training is essential
Working safely is a condition of employment

2009 | 2010 Excellence in health and safety supports excellent business results
Health and safety must be integrated in all business management processes

Quality is our main competitive advantage


The requirements and expectations of our customers must be satisfied
Quality management is integrated in all business processes
Management is responsible and accountable for quality performance
Quality performance must be assured throughout the supply chain system
Excellence in quality management is necessary for successful business results

We are committed to developing a long-term sustainable business


Minimizing the environmental impact of our operations
Making the most efficient use of natural resources and energy
Integrating environmental management in all business processes
Holding employees committed and responsible for environmental performance
Establishing an open and transparent dialogue with related stakeholders

Tenaris identifies the health and safety of its personnel, the satisfaction of its customers, the
protection of the environment and the development of the communities with which it interacts
as an absolute and integrated priority; the entire organization is oriented toward achieving
these goals openly and transparently.

Tenaris strengthens its management through constant training and updating of professional
and management skills, paying attention to the evaluation and motivation of its employees,
adherence to the ethical principles established in its Code of Conduct and the maintenance
of an adequate balance between their quality of life and its business needs.

Tenaris recognizes the importance of implementing this policy through its Quality, Health,
Safety and Environment management systems, covering the entire supply chain from suppliers
to customers and the proper and efficient use of its products in accordance with their agreed
specifications. Tenaris commits to comply with applicable legal requirements and all other
requirements relating to quality, health, safety and environment matters to which it subscribes.

Tenaris communicates this policy throughout its organization, engages and trains its
employees in the appropriate use of its Quality, Health, Safety and Environment management
systems and involves them in the regular setting, measuring and revision of objectives.

Tenaris undertakes to keep this policy updated, to implement and maintain its management
system, and continuously improve its Quality, Health, Safety and Environment performance.

October 2008

Paolo Rocca
Chief Executive Officer
Index

4 | Chairman’s letter

6 | Company presentation

10 | Safety

16 | Environment
HSE Report | Tenaris’s industrial map

Silcotub Calarasi

Silcotub Zalau

Aberdeen

Nisku
Sabbio
Prudential
Costa Volpino
AlgomaTubes
Arcore
Halifax
Piombino
Hickman Dalmine
Bakersfield Louisville
Counce
Conroe Cedar Springs
Coiled Tubes Westwego
(Donwhole and Subsea centers)
McCarty
Texas Arai
Monterrey
Tamsa
Comalcalco

TuboCaribe

Onne
Colmena
Warri

Confab

Siat VC
Villa Mercedes Siderca

Siat VA
Tenaris 2|3

NKKTubes
Qingdao

Steel Making

Seamless Pipe Manufacturing Mill

Welded Pipe Manufacturing Mill

Threading Facilities & Service Yards

Others (*)

(*) Others Include: Sucker Rods, Couplings,


Gas Cylinders, Fittings, Industrial Equipments,
Batam Coiled Tubes and Conduit Piping.

SPIJ

Darwin

Broome
Dampier
HSE Report | Chairman’s letter

Chairman’s letter
This report focuses on our safety and environmental performance. Our performance in these areas is critical to our
competitive position and we are committed to being industry leaders. Our challenge, as a company which has grown
through acquisitions and has industrial operations throughout the world, has been to integrate and apply best
practices from each of our operations into a single, transparent management system. Increasingly, it will be to take our
performance to the next level.

We have made good progress as we integrate our management systems and this is being reflected in our indicators. In
2009, our operations were affected by the crisis as we adjusted our production levels to lower levels of market demand
and reduced inventory throughout the system. Production of steel bars was 43% down on the previous year. Inevitably,
the low and changing level of capacity utilization negatively impacted the energy efficiency of our electric steelmaking
operations as well as our CO2 emissions per ton of steel produced, even when emissions were lower overall.

Our ultimate goal in safety management is zero accidents. We have made good progress in raising the level of employee
awareness and involvement in the implementation of risk assessments in the workplace and in standardizing safety
practices throughout our mills. However, even if our indicators are improving, we continue to have much work to do
to ensure that fatal accidents do not occur.

During 2009, we included among our strategic projects, a global energy-saving initiative which aims to reduce our specific
consumption of electric energy and natural gas by 10% and 15% respectively over the next four years. We implemented a
similar initiative in our Italian facilities at Dalmine in 2006 with an emphasis on promoting the rational use of energy through
improvements in equipment and processes and training activities. The results of this program were recently recognized by
the European Commission.

The environment has been a key consideration in the design of our new rolling mill at Tamsa in Mexico which is expected
to come into operation before the end of the year. We have identified and selected technologies and applied design processes
which should lead to a high level of environmental performance and energy efficiency.

Working with the World Steel Association, we are promoting an industry-wide approach to reporting standards and
transparency on climate change issues. We are active participants in the Association’s Climate Action program to collect
emissions data through a common methodology and we are committed to continue to reduce our emissions.
Tenaris 4|5

We also contribute to the safety and environmental performance of our customers through the quality and reliability
of our products and services and the development of new technologies. One clear example of this lifecycle approach
is our Dopeless® technology which makes unnecessary pipe handling and cleaning operations relating to the use of
dope compounds on the rig and at the yard with consequent benefits not only to the environment but also to operating
efficiency and safety.

As stated in our QHSE policy, the health and safety of our employees and the protection of the environment are clear and
integrated priorities at Tenaris, along with the satisfaction of our customers and the development of the communities
where we have our operations. We are committed to delivering a constant improvement in our performance.

In closing, I would like to thank our employees and contractors for their commitment to safety and the environment
and all those who contributed to preparing this report.

Paolo Rocca
HSE Report | Company presentation

A Tenaris employee in our mill in Kawasaki, Japan, carries out the stainless
steel marking process. We operate an integrated industrial system with
manufacturing and service facilities around the world.
Tenaris 6|7

Company presentation and comprises numerous sites around the world as indi-
cated in the Tenaris´s industrial map. All locations named
in the map are manufacturing facilities; unnamed sites
are service yards and threading facilities.

Production
The following table shows our production of steel
A global industrial system bars, seamless pipes and welded pipes during the past
Tenaris is a leading supplier of tubes and related services five years.
for the world’s energy industry and other industrial appli-
cations. Our mission is to deliver value to our customers 2005 2006 2007 2008 2009

through product development, manufacturing excellence, Steel 2,881 3,107 2,985 3,085 1,744

and supply chain management. We minimize risk for our Seamless pipes 2,842 3,013 2,836 3,005 1,770

customers and help them reduce costs, increase flexibility Welded pipes 476 642 1,408 1,547 540

and improve time-to-market. Tenaris employees around Unit: thousand metric tons

the world are committed to continuous improvement by


sharing knowledge across a single global organization.
Our products
We operate an integrated industrial system with manu- Our principal finished products are seamless and welded
facturing and service facilities around the world. Our steel casing and tubing, line pipe and various other me-
entire industrial system operates under a single quality chanical and structural steel pipes for different uses.
management system and we are in the process of imple- Casing and tubing are also known as Oil Country Tubular
menting a single HSE management system. Our Quality, Goods or OCTG. We also produce large diameter weld-
Health, Safety and Environment Policy outlines our com- ed steel pipes for oil and gas pipelines. We manufacture
mitment to achieving the highest standards, and to con- our steel pipe products in a wide range of specifications,
tinuously improving our performance. which vary in diameter, length, thickness, finishing, steel
grades, threading and coupling.
Our global industrial system includes:
1 DRI (Direct Reduction) mill Casing: Steel casing is used to sustain the walls of oil and
4 EAF (Electric Arc Furnace) steel shops gas wells during and after drilling.
15 Seamless pipe rolling mills
32 Welded pipe mills Tubing: Steel tubing is used to conduct crude oil
54 Heat treatment lines (28 in hot rolling mills) and natural gas to the surface after drilling has been
94 Premium threading lines, completed.
HSE Report | Company presentation

Line pipe: Steel line pipe is used to transport crude oil Our HSE management system
and natural gas from wells to refineries, storage tanks Tenaris is committed to the continuous improvement of
and loading and distribution centers. its health, safety and environmental performance. To
achieve this goal, the company relies on the implementa-
Mechanical and structural pipes: Mechanical and struc- tion and improvement of an integrated Health, Safety
tural pipes are used by general industry for various and Environment (HSE) management system.
applications, with focus on segments such as automotive
components, hydraulic cylinders, gas cylinders and Based on the principles of sustainable development, our
architectural structures. management system follows the guidelines of interna-
tional standards such as ISO 14000 and OHSAS 18000.
Cold-drawn pipe: The cold-drawing process permits the
production of pipes with the diameter and wall thickness We have launched a safety initiative as a global project
required for use in boilers, superheaters, condensers, heat with the aim of standardizing the already existing safety
exchangers, automobile production and several other practices and safety infrastructure, taking internal and
industrial applications. external best practices as a reference.

Premium joints and couplings: Premium joints and For the management of our HSE system, we have developed
couplings are specially designed connections used to join an IT tool called Tenaris Safety and Environment (TSE).
lengths of steel casing and tubing for use in high Today the system is operational at most of our production
temperature or high pressure environments. A significant sites, covering 90% of our personnel working at those
portion of our steel casing and tubing products are sup- sites. We will continue increasing system coverage, and
plied with premium joints and couplings. we will continue to improve the system, as we recognize
it as a powerful tool in helping us in our continuous im-
Coiled tubing: Coiled tubing is used for oil and gas drilling provement process.
and well workovers and for subsea pipelines.
Tenaris considers that energy efficiency is critical for a
Other Products: We also manufacture sucker rods used sustainable business. In 2009 we have launched a global
in oil extraction activities, industrial equipment of vari- strategic project for energy saving and CO2 emission re-
ous specifications and applications, including liquid and duction, to be implemented at Tenaris’s main mills and
gas storage equipment, and welded steel pipes for electric aimed at achieving a 10% reduction in specific electricity
conduits used in the construction industry. consumption and a 15% reduction in specific natural
gas consumption, based on a year’s consumption figures
(July 2008- June 2009) over a four year period.
Tenaris 8|9

TenarisUniversity As a key project of our corporate university, we continue


O u r c o r p o ra t e u n ive r s i t y Te n a r i s U n ive r s i t y with the enhancement of our HSE training.
(www.tenarisuniversity.com) has the mission of building
and sustaining Tenaris’s competitive advantage by cap- In 2009 we have started developing an HSE curriculum
turing, organizing, enriching and transferring knowledge for the Industrial School, establishing all minimum cours-
assets. The main objectives are to implement a knowledge es and contents to be taken by anyone starting a career
management system, to help attract, develop and retain within the HSE area of the organization, allowing for a
Tenaris employees, to develop cutting-edge advanced tech- standard level of knowledge among our personnel about
nical knowledge and to provide employees with required our mission, values, policy, procedures and tools. The
competencies and skills. HSE curriculum has common courses for health, safety
and environment people and other specific ones either for
TenarisUniversity was founded in 2005. It oversees health and safety or environment.
1,200,000 training hours per year, with 160 innovative
proprietary e-learning courses available and 700 curricu- Courses developed for this framework will then be used
lar classroom courses available. During 2009, 20% of the for improving and complementing course content from
training hours for all our personnel was dedicated to other curricula in order to better integrate health, safety
health, safety and environment training. and environment into other business areas.

TenarisUniversity has five schools for salaried employees: TenarisUniversity is responsible for coordinating Tenaris’s
Industrial, Finance & Administration, Commercial, support for steeluniversity.org (www.steeluniversity.org),
Management and Information Technology; one Technical the online learning portal developed by the World Steel
School for hourly employees and 13 Regional Centers. Association (worldsteel). steeluniversity.org provides a
comprehensive package of interactive, informative and
Within the Technical School, specific HSE standardized innovative e-learning resources on steel technologies.
courses have been and continue to be developed. These
are available in all technical careers. Almost 20% of the
training hours within the general common part of any
technical career is dedicated to HSE. Also, health, safety
and environment concepts are integrated into specific
technical courses related to the activity being studied.
On-the-job training is part of development plans, with
strong safety participation on risk assessments and work
instructions contents development.
HSE Report | Safety

A Tenaris employee undergoes a safety exam in our mill in Dalmine, Italy.


Awareness is significantly increased by adding safety risk assessment to
every operative step.
Tenaris 10 | 11

Safety • Increase the level ofawareness of safety matters through


the extensive involvement of personnel in risk assessment
standardization activity.
• Improve the safety conditions of the areas involved by
sustaining 5 S methodology and infrastructure changes.
• Improve risk visibility; better housekeeping has contrib-
uted to improving visual identification of risks.
Safety, our first priority • Enhance compliance with safety measures on the job thanks
Our aim is to achieve a goal of zero accidents in all of to the execution of safety audits and results follow-up.
our operations; we understand prevention as the most
powerful tool for reaching our objective. The work instructions development project and its gov-
ernance guidelines aim at improving adherence to proce-
The safety initiative delivered a comprehensive guide dures by developing and implementing a comprehensive
containing agreed standards on different steps of safety methodology that goes from participative content-gen-
management, such as risk analysis, operative procedures, eration to training, adherence control and the setting up
inspections and events investigation. Pilot implementa- of upkeep mechanisms. By adding safety risk assessment
tions were developed in Dalmine and have triggered the and counter-measures to every operative step, awareness
project implementation phase that is now ongoing is significantly increased.
throughout Tenaris’s mills.
Adherence to work instructions leads to standardized
Implementation activities have been focusing in our main work and therefore safety considerations are followed for
mills, covering today more than 50% of our sites, and each activity and controlled on a routine basis.
57% of our production lines. So far, approximately 4,700
operators, technicians and experts participated in work- Identification of unsafe situations is a key way of avoiding
place organization methodology (5 S) or risk assessments incidents. We have increased the number of sites using our
implementations. internal IT tool TSE, and have also increased the number
of observations detected, showing rising employee aware-
Given the nature of the project, the standardization of safe- ness of the importance of issuing deviations as a way of
ty practices might not show an immediate impact on event preventing incidents.
indicators. The project’s full potential will be reached when
behavioural changes have also been established and sus-
tained. Nevertheless, implementation activities throughout
Tenaris showed good qualitative results, helping to:
HSE Report | Safety

Many of these observations have their origin in inspec- The company suffered seven fatalities over the past five
tions performed by employees: line managers, supervisors, years, with three of them occurring in 2008 and the last
operators, etc. Inspections performed have increased one at the beginning of 2009. The fatality of a contractor’s
significantly in recent years. When comparing 2008 to employee in 2009 happened while assembling a structure
2009, inspections performed and recorded increased by in one of our Argentine mills.
50%, reaching a total of around 15,000 inspections in
2009. For each finding identified, corrective and preven- The lost time injury frequency rate has also decreased
tive actions are established. We encourage participation during the last year, showing an improvement of 41%
and performing inspections as a way of early detection since 2005 and 32% comparing this period to the previ-
of risky situations and for increasing the awareness of ous one (See graph 1.2).
our employees.
Health
Continuous safety improvement, lower accident rates We are committed not only to providing a good quality
Our injury frequency rate has continued to decrease during working environment but also fostering an increased
this period. When compared to the previous period, 2008, awareness of health among our employees.
the rate has decreased by 30% and by 43% if compared to
2005 (See graph 1.1). We are in the process of defining best practices and
guidelines for health management regarding the medi-
Performance during 2009 was also influenced by decreased cal structures at each site; medical controls and checks;
activity and its distribution throughout our sites; as many first aid groups; and health awareness activities. Also, a
of them stopped activity for a long period during the year set of indicators to measure our employees’ health is
as a result of the crisis. being defined, which will allow benchmarking and the
definition of actions required.

Most severe sicknesses are revealed only after many years


of hazard exposure. It is therefore important to move to-
wards proactive actions based on accurate risk assessment,
********** considering the results of monitoring activities. Industrial
Our aim is to achieve a goal of zero hygiene processes are being reviewed to identify and
accidents in all our operations; measure the health hazards and to improve the necessary
prevention is the most powerful tool controls. Standard sanitary protocols for common activi-
for reaching our objective. ties will be defined.
Tenaris 12 | 13

Our TSE system is also a useful tool for health manage- **********
ment, allowing for the recording of health information We are committed not only to providing
from employees and the relationship between risk a good quality working environment but
assessment and medical controls as a way to prevent also fostering an increased awareness of
work-related illnesses. We are supporting each site where
health among our employees.
the system is already in use to help its proper and thorough
implementation, as we recognize that a systematic
approach is also needed in this field.

First aid management is another important aspect: theo-


retical and practical training of a significant number of
line operators provides the ability to intervene quickly
and properly to handle the initial emergency situations,
until the arrival of medical staff.

Tenaris also carries out a major health promotion pro-


gram through awareness campaigns focusing on alcohol,
smoking, drugs and Aids, for example, in order to
encourage healthy lifestyle changes and through offer-
ing health checks at its facilities. During these checks,
some cases of serious diseases have been identified at
the early stages, giving better chances for successful
treatment.

30% 32%
reduction on injury reduction on lost time
frequency rate injury frequency rate
2008-2009. 2008-2009.
HSE Report | Safety

Safety indicators

1.1 Injury frequency rate 1.2 Lost time injury frequency rate

18.0 Methodology: Number of 9.0 Methodology: Number of accidents


16.0 accidents with and without lost 8.0 with lost days multiplied by 1,000,000
days (not including First Aid) divided by man hours worked.
14.0 multiplied by 1,000,000 divided 7.0
Values refer to our own personnel
13.4 by man hours worked. 6.9
12.0 6.0 until 2006.
11.6 Values refer to our own personnel 6.1
10.0 11.5 5.0 5.7 Since 2007 figures refer to own
11.0 until 2006.
5.0 personnel plus contractors.
8.0 Since 2007 figures refer to own 4.0
6.0 7.5 personnel plus contractors.
3.0 3.4
4.0 2.0
2.0 1.0
0.0 0.0
‘05 ‘06 ‘07 ‘08 ‘09 ‘05 ‘06 ‘07 ‘08 ‘09

1.3 Observations evolution

103 Obs

40 Source: TSE reported observations.

32 34.7 TSE deployment at our facilities:


2003 Dalmine | 2005 Siat |
24 2006 Confab | 2007 AlgomaTubes,
Siderca, Tamsa, Silcotub |
22.3
2008 TuboCaribe | 2009 all USA sites,
16 Prudential, Metalmecánica.
14.0
8
6.2
4.0
0
‘05 ‘06 ‘07 ‘08 ‘09
Tenaris 14 | 15

New employees take a safety course in one of our mills. During


2009, 20% of the training of all our personnel was dedicated
to HSE training.
HSE Report | Environment

We are committed to reducing air emissions level in our processes.


Significant investments are ongoing in Campana, Argentina, for the
improvement of our environmental performance.
Tenaris 16 | 17

Environment For this project our target is to obtain the Leadership in


Energy and Environmental Design (LEED) certificate for
the industrial and all auxiliary buildings. We have already
performed the initial LEED assessment and completed the
registration phase, which is a declaration of intent to cer-
tify the project. We are now preparing all the information
and assessments required by the process. The expected due
Our objective is to develop a business which is sustainable date for submission of the application for review by US
over the long term, as clearly stated in our QHSE Policy, Green Building Council is February 2011.
through the minimization of the environmental impact of
our operations and products, and by making the most ef- Our production process and the environment
ficient use of natural resources and energy. Our four steel mills use electric arc furnaces (EAF), using
recycled steel (scrap) as a raw material in combination with
During 2009, Tenaris has faced, like most companies with- mineral-based metallic charge. One of our mills, Siderca
in the industry, a complex context which has forced the in Argentina, also produces the direct reduced iron then
company to reduce activity substantially at many sites and used in our steel mill. Both the electric arc furnace and the
this situation has impacted on some of our environmental gas-based direct reduction processes are efficient ways of
efficiency indicators. producing steel with lower rates of CO2 emissions.

Today Tenaris is carrying out an expansion project at our Our steel sites use mostly scrap as raw material. Scrap is
Mexico steel mill, where a new rolling mill is being recycled from external and internal sources. Even though
deployed. Through this project, the plant is expected to the amount of scrap we use annually varies for market rea-
increase its output capacity by 450,000 tons of the 2" to 7" sons, in general it has remained at around 60% of our total
range. For our main investments, we have defined a proc- metallic charge during the past years (See graph 2.1).
ess for identifying, selecting and implementing the best
available technologies to assure an improved environmental Energy management
performance and greater energy efficiency. The environment In 2009, Tenaris launched a global strategic project for
has been a major project theme, defining low emission energy saving; the project is a four-year plan to be
processes, waste water and emission treatment systems as implemented at Tenaris’s main mills, aiming to achieve a
required; and applying energy efficiency criteria in process 10% reduction in specific electricity consumption and 15%
design, involving mainly furnaces, motors, compressors reduction in specific natural gas consumption, based on the
and other types of equipment. consumption figures for a year (July 2008- June 2009)*.

(*) The objective includes those mills which account for 95% of the total Tenaris
electricity consumption.
HSE Report | Environment

The plan is based on the one implemented in The implementation of the projects at each of our main sites
Dalmine in 2006. Dalmine implemented a Master Plan mainly includes assessments of energy reduction possibili-
for energy efficiency improvements, promoting the ties; investments; cultural change activities; and the imple-
rational use of energy, planning improvements of mentation of a system called Tenaris Energy Monitor for
existing equipment and processes and strengthening tracking consumption of natural gas, electricity, water and
training activities. compressed air. We are applying best available energy
techniques in the expansion project in Tamsa, which are also
The main results when comparing the periods June being exported to all Tenaris engineering. Over the long term,
2005 – July 2006 with June 2008 – July 2009 (without Tenaris is dedicated to projects for recovering energy from
considering power plant consumption) were a 14% exhaust fumes, looking for improvements in combustion
reduction in specific electricity consumption and a 6% chambers through high emissivity coatings, and improving
reduction in specific natural gas consumption, also EAF performance through the control of energy flows.
showing a reduction of 34 Kton/year in CO2 emissions
(direct and indirect). These results have been achieved Looking at figures for this reporting period, specific
thanks to an investment plan of more than USD 6 electricity consumption per ton of product increased in 2009.
million, a reinforced maintenance plan and a major This result is consistent with the fact that during the crisis
educational campaign. efficiencies decreased, as several processes were maintained
while operating with a significant decrease in production.
Dalmine Energy Efficiency Plan was given the Motor This impact is not so relevant when considering natural gas
Challenge Program award, an annual recognition from consumption, where figures show a similar efficiency com-
the European Commission for companies that have pared to 2008 (See graph 2.2 and 2.3).
distinguished themselves in improving their efficiency in
energy consumption through motor driver systems. The When considering only those mills with steel processes,
award ceremony took place during the 6th International looking at the overall energy intensity rate, figures show
Conference on Energy Efficiency in Motor Driver Systems a slight increase which is the same as shown by the CO2
- EEMODS’09. emission indicator for the same mills (See graph 2.4).

10% 15%
reduction in reduction in
specific electricity specific natural gas
consumption.* consumption.*

(*) Four-year plan objective in Tenaris´s main mills.


Tenaris 18 | 19

Climate change Air emissions


We are committed to improving our performance and Steelmaking, seamless pipe rolling and heat treatment are
lowering our CO2 emissions per ton produced seeking processes which produce relevant emissions in terms of par-
any possible upgrade at every step of the process, both ticulate material, nitrogen and a lower quantity of sulfur
direct and indirect. oxides. Also, finishing processes may be related to VOC
emissions when varnish is applied.
The CO2 emissions data collection program from the
worldsteel was launched in April 2008. A common meth- We measure emissions and are committed to reducing
odology has been agreed to measure CO2 per ton of steel. their level in our processes. Significant investments are
The program measures the current level of emissions from ongoing today at many sites; many others are planned
the production of steel worldwide. Tenaris actively for the coming years.
participates in this initiative for the steel industry and has
proudly received recognition under the worldsteel Climate The main investment plans for 2009 were implemented at the
Action program for reporting the emissions of all our steel mill in Siderca, with many others in different areas at
facilities covered by the scope of the program. Validation our Dalmine facility and also at some of our USA sites. We
has already been carried out by an independent expert also have ongoing R&D projects aimed at defining improve-
group within worldsteel. Tenaris is committed to continuing ments in our steel processes to decrease emission levels.
to participate and work to reduce its CO2 emissions.
Siderca investments
Tenaris tracks CO2 emissions from all its industrial sites, Significant investments have been made at the Siderca
applying worldsteel methodology but expanding it to all facility for the improvement of the emission treatment
its tube producing facilities (See graph 2.5). system of the steel mill. In 2008, the first phase of a four-
year plan began, dedicated to increasing the fumes uptake
Specific emissions, both direct and indirect, show a capacity in primary and secondary emissions systems and
decreasing trend. For 2009 we have figures very similar to strengthening the mill structure and services provided
to those for 2008 (See graph 2.6). to support the revamped systems. The next phases will
focus on further improvements in primary and secondary
emission systems and on increasing treatment capacity.
HSE Report | Environment

Waste and by-product management We also use the material efficiency indicator calculated
The steel industry produces large amounts of waste and using worldsteel methodology which is applied to
by-products. Our goal is to recycle internally or exter- sites with steel process. With this methodology we can
nally as much of our by-products and waste as possible, see gradual improvements in recycling rates at those sites
and to seek new ways of reducing the generation and (See graph 2.8).
disposal of waste. Recycling helps to reduce waste land-
fill and CO2 emissions, bringing about a more sustainable Our facilities use lubricant and hydraulic oils, which are
use of natural resources. significant in terms of quantity consumed. As shown in
the graph 2.9, specific consumption of these substances
We are investing efforts in R&D projects to find opportu- has decreased since 2005.
nities to recycle our by-products internally within the steel
mill, as we can see that these issues will become critical in Water management
the near future. In our steel making and seamless tube production facili-
ties, water management is a significant issue in terms of
We recently started tracking a recycling indicator at all sites, intake and discharge. Water is mainly used for cooling
with the objective of strongly encouraging this practice. As processes in the seamless tube steel mills; welded pipes
shown in the graph 2.7, recycling or reuse of waste from facilities have a much lower consumption of water.
Tenaris industrial sites is around 28%; the figure rises to
86% when we look at by-products and reaches 68% when For the expansion project in Tamsa, the new facility is
we look at both combined. designed to have a closed water circuit as in the rest of
the plant; but in this case also including the sanitary waste
Waste reused or recycled depending on the site includes water. This flow is to be added in the production water
for example: wood, nylon and plastic, paper and glass. circuit after proper treatment, allowing a reduction in the
subsurface water abstraction for the whole site.
Of all by-products slag is by far the one with the highest
volumes of production. It is reused in construction
applications, mainly roads. Based on production levels,
we then have scale mills which are mostly recycled in
cement industries or within the steel industry on sinter
processes as well as direct reduction fines and sludges.

68% Waste and


by-products reused
or recycled.
Tenaris 20 | 21

Tenaris sites have different water systems, which result in ease of handling, preparation and installation to reduce
relevant differences in the amount of water consumed per risks and costs. It also guarantees the appropriate amount
ton of product produced, absolute cubic meters consumed of lubricant and ensures the consistency of the coating and
and also type of water used. The situation of each site connection performance, lasting throughout the string’s
depends on amount and quality of water available. entire life cycle.

When we look at our main steel mills, the situations are Dopeless® eliminates the need to clean and remove storage
totally different. Most of them have closed loop water sys- compounds from connections prior to installation. This
tems and make-up water has different sources, depending provides operators a safer and cleaner workplace for their
on local availability. Siderca has the largest consumption rig crew. Some of the largest customers are in the North
due to its open water system. The site prioritizes the use Sea, CIS and Latin America. Growth in other important
of lower quality surface water, taken from Paraná de las oil & gas regions is expected for the current year.
Palmas river, a great deal of effort being made to minimize
subsurface water abstraction, which is in general a much Supported by an integrated global network of field serv-
more valuable resource. ices, repair shops and technical support teams, Dopeless®
technology is the leading, dope-free solution for
Tenaris actively participates in the worldsteel´s water demanding onshore and offshore oil and gas operations.
management project. One of the project’s objectives is to More than seven years of field experience show the
provide benchmarking and best-practice exchange on wa- technology’s successful performance in different
ter management, not only in terms of the technologies applications.
used but also the management strategy.

Our products and services, looking at the downstream with


a life cycle approach
A dope-free solution for operational and HSE benefits
Dopeless® technology is a dry, multi-functional coating,
which is applied through a controlled, industrial environ-
ment ensuring consistent quality and operational reliability,
enhanced corrosion protection and eliminating the need to
apply dope in the field.
**********

With this solution, connections become rig-ready, avoiding With Dopeless® technology, operators
the possibility of operational problems associated with provide safer and cleaner workplaces for
imprecise application of running compound, providing the rig crew.
HSE Report | Environment

Recycling of thread protectors Material Optimization Service


Pipes are often supplied with plastic thread protectors to Mature oilfields usually present problems related to high
prevent thread damage during transportation and stor- water cut, low cumulative production and corrosion
age. Plastic protectors are removed when the pipes are failures generating high levels of workover activities. To
used onsite. In some places where we operate, we have help our customers, Tenaris offers tailor-made solutions
developed programs for recycling protectors, thus helping applied to each operative system with the overall
to reduce waste. objective of reducing field operative costs while increas-
ing efficiency and reliability.
Some of our mills have facilities for producing plastic
thread protectors. We send recovered protectors there to Activities may include: diagnosis of the causes of the
be cleaned and reused if possible, or shredded after clean- main problem in the field: mechanical, corrosion,
ing and then recycled for producing new protectors. operative practices; identification of corrosive agents,
Sometimes we also look to third party companies for help mechanisms and causes of corrosion; specialized train-
in the recycling of plastics and metals. ing; integration of teamwork to find synergic solutions
and definition of indicators to track improvements,
Rig Ready among others.
This service, which entails the cleaning of the connections
in order to take off all the storage grease that the connec-
tions usually have, takes place in our service yards, offering
environmental benefits for our customers. This guarantees
that all grease waste is correctly managed, in a center
equipped especially for this task.
Tenaris 22 | 23

Environment indicators

2.1 Scrap use 2.2 Electricity consumption

% scrap charged MWh/t prod

70 Methodology: Values are 1.00 Methodology: measured in


calculated as t of scrap 0.90 MWh/t produced, calculated
present in the metallic charge. 0.90 as electric power consumed
0.80 0.85 0.85
65 66 on the site per ton of product.
0.70 0.75 0.71 Facilities included: Dalmine,
0.60 Arcore, Costa Volpino, Sabbio,
60
62 62 0.50
Piombino | Siderca, Siat VA, Siat VC |
Tamsa, Confab (tubes), AlgomaTubes,
0.40 NKKTubes, Silcotub Calarasi,
58
0.30 Silcotub Zalau | TuboCaribe,
55 57 Conroe, Hickman, Counce, Republic
0.20 Conduit, Coiled Tubes.
0.10
50 0
‘05 ‘06 ‘07 ‘08 ‘09 ‘05 ‘06 ‘07 ‘08 ‘09

2.3 Gas consumption 2.4 Energy intensity

Km3/t product GJ/tls

0.30 Methodology: measured in 25 Methodology: measured in GJ/t


Km3/t product. steel worldsteel methodology.
0.25 Calculated as m3 of gas consumed Boundaries: steel process mills,
20
for industrial purposes per ton of 21.1 20.4 including all other processes on site.
20.2 19.6
0.20 0.23 product. Gas consumed in power 19.3
0.22 Facilities included:
0.20 plants is not included. 15 Siderca, Silcotub Calarasi, Tamsa,
0.19 0.19
0.15 Facilities included: Dalmine, Dalmine.
Arcore, Costa Volpino, Sabbio,
10
0.10 Piombino | Siderca | Tamsa |
Tavsa | Confab (tubes) | AlgomaTubes
| NKKTubes | Siat VC | Silcotub 5
0.05 Calarasi, Silcotub Zalau | TuboCaribe |
Republic Conduit.
0 0
‘05 ‘06 ‘07 ‘08 ‘09 ‘05 ‘06 ‘07 ‘08 ‘09

Values are calculated in metric tones.


HSE Report | Environment

Environment indicators

2.5 CO2 emissions – sites with steel production 2.6. Tenaris tube and steel sites CO2 emissions

t CO2/tls t CO2/t product

1.60 Methodology: measured in t 1.20 Methodology: measured in t


CO2/t steel worldsteel methodology. CO2/t product.
1.40
Direct emissions: CO2 emissions 1.00 Direct emissions: CO2 emissions
1.20 0.40 0.41 related to steel production and other 0.42 related to steel production and/or
0.35 0.35 0.36 0.40
processes included at the site. 0.80 other processes included at the site.
1.00
Purchased electricity: upstream 0.29 Purchased electricity: upstream
0.25 0.24 CO2 emissions related to electricity
0.80 0.41 0.40 0.30 0.28 0.26 CO2 emissions related to electricity 0.60
production, using a world average 0.56 production, using a world average
0.60 0.67 emission factor of CO2/MWh 0.51 0.49 0.50 emission factor of CO2/MWh generated.
0.60 0.60
0.40 0.48
generated. Boundaries: All tube and steel producing
0.40 0.52 0.49
Indirect emissions: other upstream 0.20
sites, including all processes at the site.
0.20 CO2 emissions related to production For sites without steel making processes,
of raw materials and fuels. gas and electricity consumption
0 0 contributes to the indicatort.
‘05 ‘06 ‘07 ‘08 ‘09 Boundaries: steel mill and other ‘05 ‘06 ‘07 ‘08 ‘09
processes on site, including power Facilities included: Siderca, Silcotub
Other upstream emissions generation at steel making sites only. Purchased electricity Calarasi, Tamsa, Dalmine | Siat VA, Siat VC,
Facilities included: Siderca, Confab (tubes), Hickman, Conroe, Counce,
Energy upstream emissions Direct emissions Republic Conduit, Coiled Tubes, Algoma,
Silcotub Calarasi, Tamsa, Dalmine.
Direct emissions Prudential, TuboCaribe, NKKTubes, Arcore,
Costa Volpino, Sabbio, Piombino, Silcotub.

2.7 Waste reused-recycled

100 Methodology: Facilities included:


Waste: includes all waste produced Siderca, Silcotub Calarasi, Tamsa,
86 at the site, including hazardous Dalmine | Siat VA, Siat VC, Confab
0.80
waste. For reuse/recycled, we include (tubes), Hickman, Conroe, Counce,
any process internal or external to Republic Conduit, Coiled Tubes,
68 the site for reusing or recycling the Algoma, Tubocaribe, NKKTubes,
0.60
material. Arcore, Costa Volpino, Sabbio,
Piombino, Silcotub.
By-products: includes scale mill,
0.40 slag, DRI fines and sludges and
electric arc furnace dusts if recycled/
28 reused. Internal scrap is not included.
0.20
All percentages are calculated
comparing tons reused/ recycled
0 to generated ones in the same
Waste reused By-products Total reused categories and sites.
or recycled reused recycled or recycled
Data is based on the period July to
December 2009.
Tenaris 24 | 25

Environment indicators

2.8 Material efficiency 2.9 Lubricant and hydraulic oil use

% lts/t product

100.0 Methodology: (liquid steel 1.10 Facilities included: Tenaris´s


98.2 98.2 98.4 produced + by-products) / (liquid 1.00 tube and steel production sites.
97.7
95.0 97.2 steel produced + by-products + 0.90 0.98
waste). worldsteel methodology. 0.95
0.80 0.85
90.0 Waste: all material sent to landfill 0.82 0.81
0.70
and incineration.
0.60
85.0 By-product: all material sent to
reuse or recycling processes. 0.50

Boundaries: steel mill and other 0.40


80.0
process on site including power 0.30
75.0
plants. 0.20
Facilities included: 0.10
70.0
Siderca, Silcotub Calarasi, Tamsa, 0
‘05 ‘06 ‘07 ‘08 ‘09 Dalmine. ‘05 ‘06 ‘07 ‘08 ‘09
HSE Report | Environment

A Tenaris employee assists in a Dopeless® operation in Nisku,


Canada. Dopeless® technology is the leading dope-free solution
for demanding onshore and offshore oil and gas operations.
Tenaris 26 | 27

Corporate Information

Registered Office
46A, avenue John F. Kennedy
L-1855 Luxembourg
(352) 26 47 8979 tel
(352) 26 47 8979 fax

Principal Offices
Argentina Mexico
Av. L. N. Alem 1067 27th Floor Edificio Parque Reformas
(C1001AAT) Buenos Aires Campos Elíseos 400 17th Floor
Argentina (11560) Mexico, D.F.
(54) 11 4018 2100 tel Mexico
(54) 11 4018 1000 fax (52) 55 5282 9900 tel
(52) 55 5282 9961 fax
Italy
Piazza Caduti 6 Luglio 1944, 1 USA
(24044) Dalmine, Bergamo 2200 West Loop South, Suite 800
Italy (77027) Houston, Texas
(39) 035 560 1111 tel USA
(39) 035 560 3827 fax (1) 713 767 4400 tel
(1) 713 767 4444 fax
© Tenaris 2010. All rights reserved.
Second printing, June 2010.
www.tenaris.com

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