tenaris_hse report2009-2010

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Health, Safety andEnvironment Report

2009 | 2010


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Quality, Health, Safety and Environment Policy

Tenaris aims to achieve the highest standards o Quality, Health, Saety and Environment,

incorporating the principles o sustainable development throughout its operations.

Nothing is more important than the health and saety o everyone who works or us and

uses our products

All injuries and work-related illnesses can and must be prevented

Management is responsible and accountable or health and saety perormance

Employee engagement and training is essential

Working saely is a condition o employment

Excellence in health and saety supports excellent business results

Health and saety must be integrated in all business management processes

Quality is our main competitive advantage

The requirements and expectations o our customers must be satisfed

Quality management is integrated in all business processes

Management is responsible and accountable or quality perormance

Quality perormance must be assured throughout the supply chain system

Excellence in quality management is necessary or successul business results

We are committed to developing a long-term sustainable business

Minimizing the environmental impact o our operations

Making the most efcient use o natural resources and energy

Integrating environmental management in all business processes

Holding employees committed and responsible or environmental perormance

Establishing an open and transparent dialogue with related stakeholders

Tenaris identifes the health and saety o its personnel, the satisaction o its customers, the

protection o the environment and the development o 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 o proessional

and management skills, paying attention to the evaluation and motivation o its employees,

adherence to the ethical principles established in its Code o Conduct and the maintenance

o an adequate balance between their quality o lie and its business needs.

Tenaris recognizes the importance o implementing this policy through its Quality, Health,

Saety and Environment management systems, covering the entire supply chain rom suppliers

to customers and the proper and efcient use o its products in accordance with their agreedspecifcations. Tenaris commits to comply with applicable legal requirements and all other

requirements relating to quality, health, saety and environment matters to which it subscribes.

Tenaris communicates this policy throughout its organization, engages and trains its

employees in the appropriate use o its Quality, Health, Saety and Environment management

systems and involves them in the regular setting, measuring and revision o objectives.

Tenaris undertakes to keep this policy updated, to implement and maintain its management

system, and continuously improve its Quality, Health, Saety and Environment perormance.

October 2008

Paolo Rocca

Chie Executive Ofcer


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Index

4 | Chairmans letter

6 | Company presentation

10 | Saety

16 | Environment


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Monterrey

Villa Mercedes

Louisville

AlgomaTubes

Cedar Springs

Texas Arai

Coiled Tubes(Donwhole and Subsea centers)

Counce

Tamsa

Comalcalco

TuboCaribe

Colmena

Confab

Siderca

Siat VA

Siat VC

Bakersfield

Conroe

Hickman

Prudential

Arcore

Costa Volpino

Sabbio

Dalmine

Piombino

Silcotub Calarasi

Silcotub Zalau

Nisku

Halifax

Onne

Warri

Aberdeen

Westwego

McCarty

HSE Report | Tenariss industrial map


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NKKTubes

Qingdao

Batam

SPIJ

Steel Making

Seamless Pipe Manufacturing Mill

Threading Facilities & Service Yards

Others (*)

Welded Pipe Manufacturing Mill

(*) Others Include: Sucker Rods, Couplings,

Gas Cylinders, Fittings, Industrial Equipments,

Coiled Tubes and Conduit Piping.

Darwin

Broome

Dampier

2 | 3Tenaris


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HSE Report | Chairmans letter

This report ocuses on our saety and environmental perormance. Our perormance 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 rom each o our operations into a single, transparent management system. Increasingly, it will be to take our

perormance to the next level.

We have made good progress as we integrate our management systems and this is being reected in our indicators. In

2009, our operations were aected by the crisis as we adjusted our production levels to lower levels o market demand

and reduced inventory throughout the system. Production o steel bars was 43% down on the previous year. Inevitably,

the low and changing level o capacity utilization negatively impacted the energy efciency o our electric steelmaking

operations as well as our CO2 emissions per ton o steel produced, even when emissions were lower overall.

Our ultimate goal in saety management is zero accidents. We have made good progress in raising the level o employee

awareness and involvement in the implementation o risk assessments in the workplace and in standardizing saety

practices throughout our mills. However, even i our indicators are improving, we continue to have much work to do

to ensure that atal accidents do not occur.

During 2009, we included among our strategic projects, a global energy-saving initiative which aims to reduce our specifc

consumption o electric energy and natural gas by 10% and 15% respectively over the next our years. We implemented a

similar initiative in our Italian acilities at Dalmine in 2006 with an emphasis on promoting the rational use o energy through

improvements in equipment and processes and training activities. The results o this program were recently recognized by

the European Commission.

The environment has been a key consideration in the design o our new rolling mill at Tamsa in Mexico which is expected

to come into operation beore the end o the year. We have identifed and selected technologies and applied design processes

which should lead to a high level o environmental perormance and energy efciency.

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 Associations Climate Action program to collect

emissions data through a common methodology and we are committed to continue to reduce our emissions.

Chairmans letter


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4 | 5Tenaris

We also contribute to the saety and environmental perormance o 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 benefts not only to the environment but also to operating

efciency and saety.

As stated in our QHSE policy, the health and saety o our employees and the protection o the environment are clear andintegrated 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 perormance.

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


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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

manuacturing and service acilities around the world.


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6 | 7Tenaris

A global industrial system

Tenaris is a leading supplier o tubes and related services

or the worlds energy industry and other industrial appli-

cations. Our mission is to deliver value to our customers

through product development, manuacturing excellence,

and supply chain management. We minimize risk or our

customers and help them reduce costs, increase exibility

and improve time-to-market. Tenaris employees around

the world are committed to continuous improvement by

sharing knowledge across a single global organization.

We operate an integrated industrial system with manu-

acturing and service acilities around the world. Our

entire industrial system operates under a single quality

management system and we are in the process o imple-

menting a single HSE management system. Our Quality,

Health, Saety and Environment Policy outlines our com-

mitment to achieving the highest standards, and to con-tinuously improving our perormance.

Our global industrial system includes:

1 DRI (Direct Reduction) mill

4 EAF (Electric Arc Furnace) steel shops

15 Seamless pipe rolling mills

32 Welded pipe mills

54 Heat treatment lines (28 in hot rolling mills)

94 Premium threading lines,

and comprises numerous sites around the world as indi-

cated in the Tenariss industrial map. All locations named

in the map are manuacturing acilities; unnamed sites

are service yards and threading acilities.

Production

The ollowing table shows our production o steel

bars, seamless pipes and welded pipes during the pastfve years.

Our products

Our principal fnished products are seamless and welded

steel casing and tubing, line pipe and various other me-

chanical and structural steel pipes or dierent uses.

Casing and tubing are also known as Oil Country Tubular

Goods or OCTG. We also produce large diameter weld-

ed steel pipes or oil and gas pipelines. We manuacture

our steel pipe products in a wide range o specifcations,which vary in diameter, length, thickness, fnishing, steel

grades, threading and coupling.

Casing: Steel casing is used to sustain the walls o oil and

gas wells during and ater drilling.

Tubing: Steel tubing is used to conduct crude oil

and natural gas to the surace ater drilling has been

completed.

Company presentation

Steel

SeamleSS pipeS

Welded pipeS

Unit: thousand metric tons

2005

2,881

2,842

476

2006

3,107

3,013

642

2007

2,985

2,836

1,408

2008

3,085

3,005

1,547

2009

1,744

1,770

540


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HSE Report | Company presentation

Our HSE management system

Tenaris is committed to the continuous improvement o

its health, saety and environmental perormance. To

achieve this goal, the company relies on the implementa-

tion and improvement o an integrated Health, Saety

and Environment (HSE) management system.

Based on the principles o sustainable development, ourmanagement system ollows the guidelines o interna-

tional standards such as ISO 14000 and OHSAS 18000.

We have launched a saety initiative as a global project

with the aim o standardizing the already existing saety

practices and saety inrastructure, taking internal and

external best practices as a reerence.

For the management o our HSE system, we have developed

an IT tool called Tenaris Saety and Environment (TSE).

Today the system is operational at most o our production

sites, covering 90% o our personnel working at those

sites. We will continue increasing system coverage, and

we will continue to improve the system, as we recognize

it as a powerul tool in helping us in our continuous im-

provement process.

Tenaris considers that energy efciency is critical or a

sustainable business. In 2009 we have launched a global

strategic project or energy saving and CO2 emission re-

duction, to be implemented at Tenariss main mills and

aimed at achieving a 10% reduction in specifc electricity

consumption and a 15% reduction in specifc natural

gas consumption, based on a years consumption fgures

(July 2008- June 2009) over a our year period.

Line pipe: Steel line pipe is used to transport crude oil

and natural gas rom wells to refneries, storage tanks

and loading and distribution centers.

Mechanical and structural pipes: Mechanical and struc-

tural pipes are used by general industry or various

applications, with ocus on segments such as automotive

components, hydraulic cylinders, gas cylinders andarchitectural structures.

Cold-drawn pipe: The cold-drawing process permits the

production o pipes with the diameter and wall thickness

required or use in boilers, superheaters, condensers, heat

exchangers, automobile production and several other

industrial applications.

Premium joints and couplings: Premium joints and

couplings are specially designed connections used to join

lengths o steel casing and tubing or use in high

temperature or high pressure environments. A signifcant

portion o our steel casing and tubing products are sup-

plied with premium joints and couplings.

Coiled tubing: Coiled tubing is used or oil and gas drilling

and well workovers and or subsea pipelines.

Other Products: We also manuacture sucker rods used

in oil extraction activities, industrial equipment o vari-

ous specifcations and applications, including liquid and

gas storage equipment, and welded steel pipes or electric

conduits used in the construction industry.


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8 | 9Tenaris

As a key project o our corporate university, we continue

with the enhancement o our HSE training.

In 2009 we have started developing an HSE curriculum

or the Industrial School, establishing all minimum cours-

es and contents to be taken by anyone starting a career

within the HSE area o the organization, allowing or a

standard level o knowledge among our personnel aboutour mission, values, policy, procedures and tools. The

HSE curriculum has common courses or health, saety

and environment people and other specifc ones either or

health and saety or environment.

Courses developed or this ramework will then be used

or improving and complementing course content rom

other curricula in order to better integrate health, saety

and environment into other business areas.

TenarisUniversity is responsible or coordinating Tenariss

support or steeluniversity.org (www.steeluniversity.org),

the online learning portal developed by the World Steel

Association (worldsteel). steeluniversity.org provides a

comprehensive package o interactive, inormative and

innovative e-learning resources on steel technologies.

TenarisUniversity

Our corporate university TenarisUniversity

(www.tenarisuniversity.com) has the mission o building

and sustaining Tenariss competitive advantage by cap-

turing, organizing, enriching and transerring knowledge

assets. The main objectives are to implement a knowledge

management system, to help attract, develop and retain

Tenaris employees, to develop cutting-edge advanced tech-nical knowledge and to provide employees with required

competencies and skills.

TenarisUniversity was ounded in 2005. It oversees

1,200,000 training hours per year, with 160 innovative

proprietary e-learning courses available and 700 curricu-

lar classroom courses available. During 2009, 20% o the

training hours or all our personnel was dedicated to

health, saety and environment training.

TenarisUniversity has fve schools or salaried employees:

Industrial, Finance & Administration, Commercial,

Management and Inormation Technology; one Technical

School or hourly employees and 13 Regional Centers.

Within the Technical School, specifc HSE standardized

courses have been and continue to be developed. Theseare available in all technical careers. Almost 20% o the

training hours within the general common part o any

technical career is dedicated to HSE. Also, health, saety

and environment concepts are integrated into specifc

technical courses related to the activity being studied.

On-the-job training is part o development plans, with

strong saety participation on risk assessments and work

instructions contents development.


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HSE Report | Saety

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

Awareness is signifcantly increased by adding saety risk assessment to

every operative step.


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10 | 11Tenaris

Saety

Saety, our frst priority

Our aim is to achieve a goal o zero accidents in all o

our operations; we understand prevention as the most

powerul tool or reaching our objective.

The saety initiative delivered a comprehensive guide

containing agreed standards on dierent steps o saety

management, such as risk analysis, operative procedures,

inspections and events investigation. Pilot implementa-

tions were developed in Dalmine and have triggered the

project implementation phase that is now ongoing

throughout Tenariss mills.

Implementation activities have been ocusing in our main

mills, covering today more than 50% o our sites, and

57% o our production lines. So ar, approximately 4,700

operators, technicians and experts participated in work-

place organization methodology (5 S) or risk assessmentsimplementations.

Given the nature o the project, the standardization o sae-

ty practices might not show an immediate impact on event

indicators. The projects ull 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:

Increase the level of awareness of safety matters through

the extensive involvement o personnel in risk assessment

standardization activity.

Improve the safety conditions o the areas involved by

sustaining 5 S methodologyand inrastructure changes.

Improve risk visibility; better housekeeping has contrib-

uted to improving visual identifcation o risks.

Enhance compliance with safety measures on the job thanksto the execution o saety audits and results ollow-up.

The work instructions development project and its gov-

ernance guidelines aim at improving adherence to proce-

dures by developing and implementing a comprehensive

methodology that goes rom participative content-gen-

eration to training, adherence control and the setting up

o upkeep mechanisms. By adding saety risk assessment

and counter-measures to every operative step, awareness

is signifcantly increased.

Adherence to work instructions leads to standardized

work and thereore saety considerations are ollowed or

each activity and controlled on a routine basis.

Identifcation o unsae situations is a key way o avoiding

incidents. We have increased the number o sites using ourinternal IT tool TSE, and have also increased the number

o observations detected, showing rising employee aware-

ness o the importance o issuing deviations as a way o

preventing incidents.


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HSE Report | Saety

Many o these observations have their origin in inspec-

tions perormed by employees: line managers, supervisors,

operators, etc. Inspections perormed have increased

signifcantly in recent years. When comparing 2008 to

2009, inspections perormed and recorded increased by

50%, reaching a total o around 15,000 inspections in

2009. For each fnding identifed, corrective and preven-

tive actions are established. We encourage participationand perorming inspections as a way o early detection

o risky situations and or increasing the awareness o

our employees.

Continuous saety improvement, lower accident rates

Our injury requency rate has continued to decrease during

this period. When compared to the previous period, 2008,

the rate has decreased by 30% and by 43% i compared to

2005 (See graph 1.1).

Perormance during 2009 was also inuenced by decreased

activity and its distribution throughout our sites; as many

o them stopped activity or a long period during the year

as a result o the crisis.

The company suered seven atalities over the past fve

years, with three o them occurring in 2008 and the last

one at the beginning o 2009. The atality o a contractors

employee in 2009 happened while assembling a structure

in one o our Argentine mills.

The lost time injury requency rate has also decreased

during the last year, showing an improvement o 41%since 2005 and 32% comparing this period to the previ-

ous one (See graph 1.2).

Health

We are committed not only to providing a good quality

working environment but also ostering an increased

awareness o health among our employees.

We are in the process o defning best practices and

guidelines or health management regarding the medi-

cal structures at each site; medical controls and checks;

frst aid groups; and health awareness activities. Also, a

set o indicators to measure our employees health is

being defned, which will allow benchmarking and the

defnition o actions required.

Most severe sicknesses are revealed only ater many yearso hazard exposure. It is thereore important to move to-

wards proactive actions based on accurate risk assessment,

considering the results o monitoring activities. Industrial

hygiene processes are being reviewed to identiy and

measure the health hazards and to improve the necessary

controls. Standard sanitary protocols or common activi-

ties will be defned.

**********

Our aim is to achieve a goal o zero

accidents in all our operations;

prevention is the most powerul tool

or reaching our objective.


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12 | 13Tenaris

Our TSE system is also a useul tool or health manage-

ment, allowing or the recording o health inormation

rom employees and the relationship between risk

assessment and medical controls as a way to prevent

work-related illnesses. We are supporting each site where

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 feld.

First aid management is another important aspect: theo-

retical and practical training o a signifcant number o

line operators provides the ability to intervene quickly

and properly to handle the initial emergency situations,

until the arrival o medical sta.

Tenaris also carries out a major health promotion pro-

gram through awareness campaigns ocusing on alcohol,

smoking, drugs and Aids, or example, in order to

encourage healthy liestyle changes and through oer-

ing health checks at its acilities. During these checks,

some cases o serious diseases have been identifed at

the early stages, giving better chances or successul

treatment.

**********

We are committed not only to providing

a good quality working environment but

also ostering an increased awareness o

health among our employees.

reduction on injuryrequency rate

2008-2009.

30%reduction on lost timeinjury requency rate

2008-2009.

32%


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HSE Report | Saety

Saety indicators

05 06 07 08

4.06.2

14.0

22.3

Source: tSe ror obsrvons.

TSE deployment at our facilities:

2003 dn | 2005 S |2006 Conb | 2007 agotubs,Src, ts, Scoub |2008 tuboCrb | 2009 USa ss,prun, mcnc.

1.3 Observations evolution

103 Obs

40

24

32

16

8

0

1.2 Lost time injury requency rate

Methodology: Nubr o ccns

wh os ys u by 1,000,000v by n hours work.

Vus rr o our own rsonnun 2006.

Snc 2007 fgurs rr o ownrsonn us conrcors.

05 06 07 08

6.9

6.15.7

5.0

9.0

5.0

6.0

7.0

8.0

3.0

4.0

1.0

2.0

0.0

Methodology: Nubr o

ccns wh n whou osys (no ncung Frs a)u by 1,000,000 vby n hours work.

Vus rr o our own rsonnun 2006.

Snc 2007 fgurs rr o ownrsonn us conrcors.

1.1 Injury requency rate

18.0

10.0

12.0

14.0

16.0

6.0

8.0

2.0

4.0

0.005 06 07 08

13.4

11.6 11.5 11.0

09

7.5

09

3.4

09

34.7


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Tenaris 14 | 15

New employees take a saety course in one o our mills. During

2009, 20% o the training o all our personnel was dedicated

to HSE training.


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HSE Report | Environment

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

Signifcant investments are ongoing in Campana, Argentina, or the

improvement o our environmental perormance.


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16 | 17Tenaris

Environment

Our objective is to develop a business which is sustainableover the long term, as clearly stated in our QHSE Policy,

through the minimization o the environmental impact o

our operations and products, and by making the most e-

fcient use o natural resources and energy.

During 2009, Tenaris has aced, like most companies with-

in the industry, a complex context which has orced the

company to reduce activity substantially at many sites and

this situation has impacted on some o our environmental

efciency indicators.

Today Tenaris is carrying out an expansion project at our

Mexico steel mill, where a new rolling mill is being

deployed. Through this project, the plant is expected to

increase its output capacity by 450,000 tons o the 2" to 7"

range. For our main investments, we have defned a proc-

ess or identiying, selecting and implementing the bestavailable technologies to assure an improved environmental

perormance and greater energy efciency. The environment

has been a major project theme, defning low emission

processes, waste water and emission treatment systems as

required; and applying energy efciency criteria in process

design, involving mainly urnaces, motors, compressors

and other types o equipment.

For this project our target is to obtain the Leadership in

Energy and Environmental Design (LEED) certifcate or

the industrial and all auxiliary buildings. We have already

perormed the initial LEED assessment and completed the

registration phase, which is a declaration o intent to cer-

tiy the project. We are now preparing all the inormation

and assessments required by the process. The expected due

date or submission o the application or review by USGreen Building Council is February 2011.

Our production process and the environment

Our our steel mills use electric arc urnaces (EAF), using

recycled steel (scrap) as a raw material in combination with

mineral-based metallic charge. One o our mills, Siderca

in Argentina, also produces the direct reduced iron then

used in our steel mill. Both the electric arc urnace and the

gas-based direct reduction processes are efcient ways o

producing steel with lower rates o CO2 emissions.

Our steel sites use mostly scrap as raw material. Scrap is

recycled rom external and internal sources. Even though

the amount o scrap we use annually varies or market rea-

sons, in general it has remained at around 60% o our total

metallic charge during the past years (See graph 2.1).

Energy management

In 2009, Tenaris launched a global strategic project or

energy saving; the project is a our-year plan to be

implemented at Tenariss main mills, aiming to achieve a

10% reduction in specifc electricity consumption and 15%

reduction in specifc natural gas consumption, based on the

consumption fgures or a year (July 2008- June 2009)*.

(*) The objective includes those mills which account or 95% o the total Tenariselectricity consumption.


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The plan is based on the one implemented in

Dalmine in 2006. Dalmine implemented a Master Plan

or energy eiciency improvements, promoting the

rational use o energy, planning improvements o

existing equipment and processes and strengthening

training activities.

The main results when comparing the periods June2005 July 2006 with June 2008 July 2009 (without

considering power plant consumption) were a 14%

reduction in speciic electricity consumption and a 6%

reduction in speciic natural gas consumption, also

showing a reduction o 34 Kton/year in CO2 emissions

(direct and indirect). These results have been achieved

thanks to an investment plan o more than USD 6

million, a reinorced maintenance plan and a major

educational campaign.

Dalmine Energy Efciency Plan was given the Motor

Challenge Program award, an annual recognition rom

the European Commission or companies that have

distinguished themselves in improving their efciency in

energy consumption through motor driver systems. The

award ceremony took place during the 6th International

Conerence on Energy Efciency in Motor Driver Systems- EEMODS09.

The implementation o the projects at each o our main sites

mainly includes assessments o energy reduction possibili-

ties; investments; cultural change activities; and the imple-

mentation o a system called Tenaris Energy Monitor or

tracking consumption o natural gas, electricity, water and

compressed air. We are applying best available energy

techniques in the expansion project in Tamsa, which are also

being exported to all Tenaris engineering. Over the long term,Tenaris is dedicated to projects or recovering energy rom

exhaust umes, looking or improvements in combustion

chambers through high emissivity coatings, and improving

EAF perormance through the control o energy ows.

Looking at igures or this reporting period, speciic

electricity consumption per ton o product increased in 2009.

This result is consistent with the act that during the crisis

efciencies decreased, as several processes were maintained

while operating with a signifcant decrease in production.

This impact is not so relevant when considering natural gas

consumption, where fgures show a similar efciency com-

pared to 2008 (See graph 2.2 and 2.3).

When considering only those mills with steel processes,

looking at the overall energy intensity rate, fgures show

a slight increase which is the same as shown by the CO2emission indicator or the same mills (See graph 2.4).

reduction inspecifc electricity

consumption.*

10%reduction in

specifc natural gasconsumption.*

15%

(*) Four-year plan objective in Tenariss main mills.


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18 | 19Tenaris

Climate change

We are committed to improving our perormance and

lowering our CO2 emissions per ton produced seeking

any possible upgrade at every step o the process, both

direct and indirect.

The CO2 emissions data collection program rom the

worldsteel was launched in April 2008. A common meth-odology has been agreed to measure CO2 per ton o steel.

The program measures the current level o emissions rom

the production o steel worldwide. Tenaris actively

participates in this initiative or the steel industry and has

proudly received recognition under the worldsteel Climate

Action program or reporting the emissions o all our

acilities covered by the scope o the program. Validation

has already been carried out by an independent expert

group within worldsteel. Tenaris is committed to continuing

to participate and work to reduce its CO2 emissions.

Tenaris tracks CO2 emissions rom all its industrial sites,

applying worldsteel methodology but expanding it to all

its tube producing acilities (See graph 2.5).

Speciic emissions, both direct and indirect, show a

decreasing trend. For 2009 we have fgures very similarto those or 2008 (See graph 2.6).

Air emissions

Steelmaking, seamless pipe rolling and heat treatment are

processes which produce relevant emissions in terms o par-

ticulate material, nitrogen and a lower quantity o sulur

oxides. Also, fnishing processes may be related to VOC

emissions when varnish is applied.

We measure emissions and are committed to reducingtheir level in our processes. Signifcant investments are

ongoing today at many sites; many others are planned

or the coming years.

The main investment plans or 2009 were implemented at the

steel mill in Siderca, with many others in dierent areas at

our Dalmine acility and also at some o our USA sites. We

also have ongoing R&D projects aimed at defning improve-

ments in our steel processes to decrease emission levels.

Siderca investments

Signifcant investments have been made at the Siderca

acility or the improvement o the emission treatment

system o the steel mill. In 2008, the frst phase o a our-

year plan began, dedicated to increasing the umes uptake

capacity in primary and secondary emissions systems and

to strengthening the mill structure and services providedto support the revamped systems. The next phases will

ocus on urther improvements in primary and secondary

emission systems and on increasing treatment capacity.


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Waste and by-product management

The steel industry produces large amounts o waste and

by-products. Our goal is to recycle internally or exter-

nally as much o our by-products and waste as possible,

and to seek new ways o reducing the generation and

disposal o waste. Recycling helps to reduce waste land-

fll and CO2 emissions, bringing about a more sustainable

use o natural resources.

We are investing eorts in R&D projects to fnd opportu-

nities to recycle our by-products internally within the steel

mill, as we can see that these issues will become critical in

the near uture.

We recently started tracking a recycling indicator at all sites,

with the objective o strongly encouraging this practice. As

shown in the graph 2.7, recycling or reuse o waste rom

Tenaris industrial sites is around 28%; the fgure rises to

86% when we look at by-products and reaches 68% when

we look at both combined.

Waste reused or recycled depending on the site includes

or example: wood, nylon and plastic, paper and glass.

O all by-products slag is by ar the one with the highestvolumes o 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 fnes and sludges.

We also use the material efciency indicator calculated

using worldsteel methodology which is applied to

sites with steel process. With this methodology we can

see gradual improvements in recycling rates at those sites

(See graph 2.8).

Our acilities use lubricant and hydraulic oils, which are

signifcant in terms o quantity consumed. As shown inthe graph 2.9, specifc consumption o these substances

has decreased since 2005.

Water management

In our steel making and seamless tube production acili-

ties, water management is a signifcant issue in terms o

intake and discharge. Water is mainly used or cooling

processes in the seamless tube steel mills; welded pipes

acilities have a much lower consumption o water.

For the expansion project in Tamsa, the new acility is

designed to have a closed water circuit as in the rest o

the plant; but in this case also including the sanitary waste

water. This ow is to be added in the production water

circuit ater proper treatment, allowing a reduction in the

subsurace water abstraction or the whole site.

Waste andby-products reused

or recycled.

68%

20 | 21T i


23/32

20 | 21Tenaris

Tenaris sites have dierent water systems, which result in

relevant dierences in the amount o water consumed per

ton o product produced, absolute cubic meters consumed

and also type o water used. The situation o each site

depends on amount and quality o water available.

When we look at our main steel mills, the situations are

totally dierent. Most o them have closed loop water sys-tems and make-up water has dierent sources, depending

on local availability. Siderca has the largest consumption

due to its open water system. The site prioritizes the use

o lower quality surace water, taken rom Paran de las

Palmas river, a great deal o eort being made to minimize

subsurace water abstraction, which is in general a much

more valuable resource.

Tenaris actively participates in the worldsteels water

management project. One o the projects objectives is to

provide benchmarking and best-practice exchange on wa-

ter management, not only in terms o the technologies

used but also the management strategy.

Our products and services, looking at the downstream with

a lie cycle approach

A dope-ree solution or operational and HSE beneftsDopeless technology is a dry, multi-unctional 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 feld.

With this solution, connections become rig-ready, avoiding

the possibility o operational problems associated with

imprecise application o running compound, providing

ease o handling, preparation and installation to reduce

risks and costs. It also guarantees the appropriate amount

o lubricant and ensures the consistency o the coating and

connection perormance, lasting throughout the strings

entire lie cycle.

Dopeless eliminates the need to clean and remove storage

compounds rom connections prior to installation. Thisprovides operators a saer and cleaner workplace or their

rig crew. Some o the largest customers are in the North

Sea, CIS and Latin America. Growth in other important

oil & gas regions is expected or the current year.

Supported by an integrated global network o feld serv-

ices, repair shops and technical support teams, Dopeless

technology is the leading, dope-ree solution or

demanding onshore and oshore oil and gas operations.

More than seven years o feld experience show the

technologys successul perormance in dierent

applications.

**********

With Dopeless technology, operators

provide saer and cleaner workplaces or

the rig crew.



24/32


Recycling o thread protectors

Pipes are oten supplied with plastic thread protectors to

prevent thread damage during transportation and stor-

age. Plastic protectors are removed when the pipes are

used onsite. In some places where we operate, we have

developed programs or recycling protectors, thus helping

to reduce waste.

Some o our mills have acilities or producing plastic

thread protectors. We send recovered protectors there to

be cleaned and reused i possible, or shredded ater clean-

ing and then recycled or producing new protectors.

Sometimes we also look to third party companies or help

in the recycling o plastics and metals.

Rig Ready

This service, which entails the cleaning o the connections

in order to take o all the storage grease that the connec-

tions usually have, takes place in our service yards, oering

environmental benefts or our customers. This guarantees

that all grease waste is correctly managed, in a center

equipped especially or this task.

Material Optimization Service

Mature oilfelds usually present problems related to high

water cut, low cumulative production and corrosion

ailures generating high levels o workover activities. To

help our customers, Tenaris oers tailor-made solutions

applied to each operative system with the overall

objective o reducing feld operative costs while increas-

ing efciency and reliability.

Activities may include: diagnosis o the causes o the

main problem in the ield: mechanical, corrosion,

operative practices; identifcation o corrosive agents,

mechanisms and causes o corrosion; specialized train-

ing; integration o teamwork to fnd synergic solutions

and defnition o indicators to track improvements,

among others.

22 | 23Tenaris


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22 | 23Tenaris

Environment indicators

2.1 Scrap use

% scr chrg

Methodology: Vus r

ccu s o scrrsn n h c chrg.

70

60

65

55

5007

62

0805 06

58

57

62

09

66

2.2 Electricity consumption

mWh/ ro

Methodology: sur n

mWh/ rouc, ccus crc owr consuon h s r on o rouc.

Facilities included: dn,arcor, Cos Vono, Sbbo,pobno | Src, S Va, S VC |ts, Conb (ubs), agotubs,NKKtubs, Scoub Crs,Scoub Zu | tuboCrb,Conro, Hckn, Counc, RubcConu, Co tubs.

1.00

0.800.90

0.70

0.60

0.50

0.40

0.30

0.20

0.10

005 06 07 08

0.85

0.75 0.71

0.90

09

0.85

2.3 Gas consumption

K3/ rouc

Methodology: sur nK3/ rouc.

Ccu s 3 o gs consuor nusr uross r on orouc. Gs consu n owrns s no ncu.

Facilities included: dn,arcor, Cos Vono, Sbbo,pobno | Src | ts |tvs | Conb (ubs) | agotubs| NKKtubs | S VC | ScoubCrs, Scoub Zu | tuboCrb |Rubc Conu.

05 06 07 08

0.230.22

0.200.19

0.30

0.20

0.25

0.15

0.10

0.05

0

09

0.19

2.4 Energy intensity

GJ/s

Methodology: sur n GJ/s wors hooogy.

Boundaries: s rocss s,ncung ohr rocsss on s.

Facilities included:Src, Scoub Crs, ts,dn.

25

15

20

10

5

007 0805 06

21.120.2

19.319.6

09

20.4

Values are calculated in metric tones.



26/32

p |


2.5 CO2 emissions sites with steel production

CO2/s

Methodology: sur n

CO2/ s wors hooogy.Direct emissions: CO2 ssonsr o s roucon n ohrrocsss ncu h s.

Purchased electricity: usrCO2 ssons r o crcyroucon, usng wor vrgsson cor o CO2/mWhgnr.

Indirect emissions: ohr usrCO2 ssons r o roucono rw rs n us.

Boundaries: s n ohrrocsss on s, ncung owrgnron s kng ss ony.

Facilities included: Src,Scoub Crs, ts, dn.

1.60

1.20

1.40

1.00

0.80

0.60

0.40

0.20

0

Other upstream emissions

Energy upstream emissions

Direct emissions

05 06 07 08

0.40

0.41

0.52

0.41

0.40

0.49

0.35

0.30

0.60

0.35

0.28

0.60

09

0.36

0.26

0.67

Purchased electricity

Direct emissions

05 06 07 08

0.42

0.56

0.40

0.51

0.29

0.48

0.25

0.49

09

0.24

0.50

Methodology:

Waste: ncus ws rouc

h s, ncung hzrousws. For rus/rcyc, w nc uny rocss nrn or xrn oh s or rusng or rcycng hr.

By-products: ncus sc ,sg, dRi fns n sugs ncrc rc urnc uss rcyc/rus. inrn scr s no ncu.

a rcngs r ccucorng ons rus/ rcyco gnr ons n h s cgors n ss.

d s bs on h ro Juy odcbr 2009.

Facilities included:Src, Scoub Crs, ts,

dn | S Va, S VC, Conb(ubs), Hckn, Conro, Counc,Rubc Conu, Co tubs,ago, tubocrb, NKKtubs,arcor, Cos Vono, Sbbo,pobno, Scoub.

2.7 Waste reused-recycled

%

100

0.80

0.60

0.40

0.20

0Ws rus

or rcycBy-roucs

rus rcycto rusor rcyc

Methodology: sur n

CO2/ rouc.Direct emissions: CO2 ssonsr o s roucon n/orohr rocsss ncu h s.

Purchased electricity: usrCO2 ssons r o crcyroucon, usng wor vrgsson cor o CO2/mWh gnr.

Boundaries: a ub n s roucngss, ncung rocsss h s. For ss whou s kng rocsss,gs n crcy consuonconrbus o h ncor.

Facilities included: Src, ScoubCrs, ts, dn | S Va, S VC,

Conb (ubs), Hckn, Conro, Counc,Rubc Conu, Co tubs, ago,prun, tuboCrb, NKKtubs, arcor,Cos Vono, Sbbo, pobno, Scoub.

2.6. Tenaris tube and steel sites CO2 emissions

CO2/ rouc

1.20

0.80

1.00

0.60

0.40

0.20

0

28

86

68

Tenaris 24 | 25


27/32


2.9 Lubricant and hydraulic oil use

s/ rouc

Facilities included: tnrss

ub n s roucon ss.

1.10

0.901.00

0.80

0.70

0.60

0.50

0.30

0.40

0.10

0.20

005 06 07 08

0.95

0.85 0.82

0.98

09

0.81

Methodology: (qu s

rouc + by-roucs) / (qus rouc + by-roucs +ws). wors hooogy.

Waste: r sn o nfn ncnron.

By-product: r sn orus or rcycng rocsss.

Boundaries: s n ohrrocss on s ncung owrns.

Facilities included:Src, Scoub Crs, ts,dn.

2.8 Material efciency

%

100.0

90.0

95.0

85.0

80.0

75.0

70.005 06 07 08

97.297.7 98.2 98.2

09

98.4



28/32

A Tenaris employee assists in a Dopeless operation in Nisku,

Canada. Dopeless technology is the leading dope-ree solution

or demanding onshore and oshore oil and gas operations.

26 | 27Tenaris


29/32

Registered Ofce

46A, avenue John F. Kennedy

L-1855 Luxembourg

(352) 26 47 8979 tel

(352) 26 47 8979 ax

Principal Ofces

Argentina

Av. L. N. Alem 1067 27th Floor

(C1001AAT) Buenos Aires

Argentina

(54) 11 4018 2100 tel

(54) 11 4018 1000 ax

Italy

Piazza Caduti 6 Luglio 1944, 1

(24044) Dalmine, Bergamo

Italy

(39) 035 560 1111 tel

(39) 035 560 3827 ax

Mexico

Edifcio Parque Reormas

Campos Elseos 400 17th Floor

(11560) Mexico, D.F.

Mexico

(52) 55 5282 9900 tel

(52) 55 5282 9961 ax

USA

2200 West Loop South, Suite 800

(77027) Houston, Texas

USA

(1) 713 767 4400 tel

(1) 713 767 4444 ax

Corporate Inormation


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