Professional Documents
Culture Documents
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
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
Others (*)
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
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 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
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.
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.
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
103 Obs
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.*
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.
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.
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
Environment indicators
Environment indicators
2.5 CO2 emissions – sites with steel production 2.6. Tenaris tube and steel sites CO2 emissions
Environment indicators
% lts/t product
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