ENVIRONMENTALACTING STATEMENT 2017

voestalpine Tubulars GmbH & Co KG voestalpine Tubulars GmbH & Co KG www.voestalpine.com/tubulars ACTING>www,voestalpine,com/tubulars ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 1 2 PREFACE

This year’s Environmental Statement of voestalpine Tubulars has been issued with the motto ‘ACTING’.

For us, this expression is not only linked with the topics engineering, environment and nature, but it also stands for everything we do.

Particularly in today‘s world, the interaction between these areas needs to be brought more strongly into focus.

In order to achieve a balance in our company between these three topics, the ‘ACTING’ of all our employees is decisive and of the greatest importance - because only the human beings can be the link between technology and nature.

The Environmental Statement 2017 contains illustrations, data and images that show the work of our employees as regards the implementation of en- vironmental requirements, as well as compliance with environment-related regulations, and they are a testimony to our striving for continuous improvement.

A company can only be successful in the long term while at the same time ensuring an intact environment when outstanding technology, economic thinking and responsible ‘ACTING’ of all employees are closely linked.

voestalpine Tubulars’ Environmental Team

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 3 Environmental statement 2017 in accor- dance with Council Regulation EMAS III (1221/2009 + 761/2001 + 196/2006) concerning voluntary participation by commercial organisa- tions in a Community Eco-Management and Audit scheme (EMAS regulation).

NACE Code: 24.20 Technik Umwelt Company Register No.: 165400 k atur N EMAS Location No: AT-000208 ISO 14001 - Cert. No: U1530048 TUN GLN number: 9008390198421

Contact Harald Kohlhofer Environmental Officer Alpinestrasse 17, 8652 Kindberg, Austria Telephone: +43/50304/23-366 Fax: +43/50304/63-346 e-mail: [email protected] Website: www.voestalpine.com/tubulars

Kindberg, March 2017

4 CONTENT

Preface 3 Ecological Balance Sheet 32 Contents 5 Input materials 34 Organization 6 Waste 35 Organizational Structure of voestalpine Tubulars GmbH & Co KG 7 Water / Wastewater 37 Company History 8 Waste Air 44 Company Profile 10 Energy 46 Activities of the Company 12 Transport 48 Organizational Structure of Production 16 Indirect Environmental Aspects 48 Awards 18 Environmental Indicators 50 Management Policy 20 Accident Statistics 56 Environmental Impact Assessment 21 Environmental Program 2017/18 58 The Company’s Environmental Performance 22 General Information 62 Validation of the Environmental Statement 63

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 5 ORGANIZATION voestalpine AG

Metal Metal Steel Special Steel voestalpine Tubulars GmbH & Co KG is a subsidiary of voestalpine AG - Division Metal Engineering. Engineering Forming The company is owned equally by voestalpine AG and the US-American company National Oilwell Varco (NOV) Grant Prideco. voestalpine Metal Engineering GmbH & Co KG

voestalpine voestalpine voestalpine Schienen Stahl Donawitz VAE GmbH GmbH GmbH

voestalpine TSTG Schienen voestalpine Klöckner Technik Austria Draht Bahntechnik GmbH& Co KG GmbH GmbH

voestalpine voestalpine voestalpine Rail Center Böhler Welding Railpro B,V Duisburg GmbH (70%) GmbH

voestalpine Tubulars As of: March 2017 GmbH & Co KG (50%)

6 Seamless Pipe Threading Process Production Pipe Finishing Plant Units Coordination

Engineering Engineering Engineering Engineering Projects, Engineering Engineering Management Tech. Docu- Electrics Mechanics mentation ORGANIZATIONAL STRUCTURE OF Quality Quality Quality Department Management Testing VOESTALPINE TUBULARS GMBH & CO KG

Product, Thread Testing Process, Development R & D Technology Materials Thread Development Engineering Management Board

Materials Procurement Procurement Management

Labour law, Personnel Personnel Management Human Accounting, Administration Systems Resources Work and Time and Develop- Management ment

Management Financial Finances, Accounting, Accounting, Controlling Balance Sheets, Controlling Taxes

Australasia Industrial Internal Sales Logistics CIS Europe + China Middle East America Africa Products OCTG & NOV Sales, Marketing

Technical Business Marketing Sales Development & CD Field Services As of: March 2017

Law

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 7 COMPANY HISTORY

1700 > Long before 1700, the Lord core sections were the puddle mill and was enlarged and a new rolling mill of the Manor, Hart, operated a rolling mill. 1874 > The Sankt Egydy with four steam-powered mill trains, as smithy and a tavern on the neigh- - Kindberg and Steel Company well as additional housing for workers bouring property called ‚the Aun expanded the plant and completed a were constructed. 1908 > The operati- or the Taubmuehle‘ . 1784 > Georg second puddle mill and rolling mill. At on of the puddle mill was abandoned Scheikl established a hammer mill. the same time, additional housing was for economic reasons. 1927 > An an- The concession was registered for constructed for the workers, which for- nealing and steel tempering plant was a ferrier, rake and toolsmith with a med the heart of a residential estate. added for processing stainless steel. furnace with a hammer, and 1882 > The Austrian - Alpine Montan- 1929 > The conversion of the mill a drawing furnace with hammer. 1821 gesellschaft built a railway connection trains to electric power was started in > The ‘Taubhammer‘, owned by Franz between Kindberg railway station and this year. 1935 > A hammer mill went Pfeffinger, was declared bankrupt and the mill. 1885 > The company emplo- into operation. 1943 > The cold rolling was auctioned off to Mathias Jandl. yed 507 employees, amongst them mill was transferred from Rottenmann 1843 > The hammer mill employed approx. 30 women and 20 youths. The to Kindberg. 1948 > On October 1, seven workers and three woodcut- daily working time was twelve hours, the first production of steel pipes in ters. At that time, the workers were but longer if necessary. Sometimes Austria went into operation. 1962 > firmly established in the guild system work was also carried out on Sundays. The newly built conveyor line I was and received food and housing in The average monthly wage was 40 commissioned. 1969 > The state-of- addition to an annual salary. When Guilders, and in the event of illness, the-art hammer mill was put into oper- they became unable to work due to 50% of the salary was paid. The ation. 1977 > Beginning of the plant‘s old age, they continued to receive monthly old-age pension was approx. restructuring which in the following ‘charity sustenance‘. In the same year, 20 Guilders. However, only very few years envisaged the closure of the production reached approx. 1,450 workers actually benefitted from this, hot rolling mill, the hammer mill and hundredweight, which corresponds as they generally had to work well into also the cold rolling mill. 1980 > The to approx. 81 tons. 1866 > Anton old age. Annual production reached seamless tube rolling mill commenced Fischer constructed a smelter which approx. 10,000 tons. 1904 > The mill operations. 1982 > The OCTG plant was completed in December 1866. Its was further expanded. The puddle mill started production. 1998 > Introduction

8 of the CPE technology (Crossroll-Pier- VOESTALPINE TUBULARS - cing-Elongating). 1999 > Environmen- WHERE TRADITION MEETS tal Management System according to ISO 14001 / EMAS. 2001 > Renamed INNOVATION. HIGH-QUALITY as voestalpine Tubulars GmbH & PRODUCTS TO MEET THE HIGHEST Co KG. 2004 > Safety Management DEMANDS DEVELOPED AND System according to OHSAS 18001. 2008 > Commissioning of a produc- PRODUCED IN AUSTRIA. tion line for axle pipes. 2012 > Energy QUALITY TUBES FOR THE ENTIRE Management System according to ISO 50001. 2014 > Installation of WORLD. a new Test Center incl. an acid gas laboratory and a thread connection test centre.

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 9 COMPANY PROFILE

voestalpine Tubulars GmbH & Co KG, a subsidiary of the voestalpine Group, is located in Kindberg.

GEOGRAPHIC LOCATION

The company is located at the confluence of the rivers Mur and Mürz, near the town of Kindberg (District of Bruck-Mürzzuschlag) in the Province of Styria. The factory premises are bordered by the river Mürz to the north, and the S6 Semmering dual carriageway to the south.

The tracts of land making up the site are zoned as industrial areas I and II.

There are residential areas in the immediate vicinity of the plant. The plant is protected by a flood protection dam. The main wind direction is west.

INFRASTRUCTURE

The site is connected to:

• the S6 dual carriage way • natural gas , power 110 kV • the ÖBB rail network

Industrial water is supplied by a company-owned deep well, and the drinking water by the local municipality.

10 HISTORICAL DEVELOPMENT

The Kindberg plant has a long tradition of iron manufacturing.

The antiquated production sites in Kindberg dating back to the 1970s - hammer mill, hot and cold rolling mill, as well as the bright steel unit - were confronted with increasing competition on the market.

At the beginning of the 1980s, the plant was completely restructured in order to focus on the production of seamless pipes. Thanks to constant research and continuous development, the company can now offer its customers tailor-made products.

The Kindberg location now consists of two main plants

THE SEAMLESS PIPE PLANT and THE OCTG PLANT

with all auxiliary and subsidiary operations, such as workshops, a Quality Department, Research & Development, an Acid Gas Laboratory and a Testing Center.

The plants‘ annual production capacity is approx. 420,000 tons of steel pipes with external diameters ranging from 26.7 to 193.7 mm (3/4“ to 7 5/8“).

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 11 COMPANY ACTIVITIES

RANGE OF PRODUCTS Tubular Goods, low temperature a shearing temperature of approx. resistant Oil Country Tubular Goods 200°C. The company produces pipes (to minus 60°C), special solutions, ranging from unalloyed to medium Oil Country Tubular Goods from After they have been heated alloyed grades in accordance alloyed steel, crossovers, upset in a rotary hearth furnace to a with national and international pipes, and special pipe joints. thermoforming temperature of standards, as well as special approx. 1,280°C, the billets are grades that are aligned to specific PRODUCTION OF STEEL formed into hollow blocks in a cross- requirements. PIPES roll piercer. After this process, the hollows are moved to the push bench. The standard production program Seamless pipe plant Here, they are rolled on mandrel bars comprises ready to install Oil (hot pipe production) into tube shells with a suitable wall Country Tubular Goods for the thickness and to a maximum length exploration and production of oil The engineering concept for of 22 metres. and natural gas, couplings and manufacturing seamless pipes is Subsequently, the tube shells are coupling hollows, boiler and heat- based on the push bench process. heated once more to approx. exchanger tubes, pressure tubing, 1,000°C in a re-heating furnace and line pipes, mechanical tubes, pipes The raw material consists exclusively rolled in a stretch reducing mill to the for the automotive industry, as well of round, continuously cast billets required dimension for finished pipes. as hollows (tube shells) for drawing which are mainly cut to the desired shops. lengths for use with carbide tipped Then, the pipes pass through saws, whereby the sawing takes place cooling beds and cold saws to an The special product range includes at room temperature. However, intermediate storage facility from Oil Country Tubular Goods with billets which on rare occasions must where they are sent either to a gas-tight threaded connections, be cut by billet shears have to be finishing line for commercial and acid gas resistant Oil Country heated in a pre-heating furnace to special pipes, or to the OCTG plant.

12 FURTHER PROCESSING OF TUBES

Finishing line for industrial pipes

The entire group of industrial pipes (mechanical tubes, line pipe, etc.) are processed in the finishing line and, when completed, are transferred to the shipping storage facility.

Oil Country Tubular Goods Plant

The production process in the OCTG plant basically consists of five stages:

• Incoming goods inspection • Upsetting unit • Heat treatment • Threading unit • Coupling production

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 13 of the smooth-ended roller-straighteners (cold and a related inspection, hollows undergo or hot straighteners), the couplings are induction heating and followed by a straightness screwed on, followed by a are then formed to the check of the pipe ends, pressure test in the water required dimensions in the blow-out station, pressure press, as well as one of the two upsetting non-destructive testing a drift check by means presses. Regular OCTG by means of leakage flux of mandrel testing. In the upsetting is performed and a magnetic particle next station, caps are in a mechanical- inspection of the pipe screwed on which protect hydraulic press, whereas ends. This ensures that the threads on the inside a hydraulic press is only fully tested, defect- and the outside. available for special free pipes are passed on upsetting. to the threading unit.

During heat treatment, Four thread curing lines the pipes are first hea- are available for the During the incoming goods ted in an austenization subsequent processing inspection, the hot rolled, untested furnace to an annealing steps. pipes from the seamless pipe mill or normalising tempera- are straightened and undergo ture, and then quenched Before the pipes enter non-destructive testing by means by spraying with water. the automatic threading of an electromagnetic process. The annealed pipes are machines, the ends of Depending on their intended use, then fed into a tempering special-purpose pipes the tested pipes are then sent either furnace. After this treat- can be calibrated with for cutting or for further processing. ment, the normalised a calibration press. In the upsetting unit, the ends or tempered tubes pass After threading (API and through one of the two special premium threads)

14 The defect-free pipes The next stage takes automatic saws where they are cut with their protective place in two UV to the required length. The resulting caps are then fed in- varnishing plants where pipe sections are subsequently line into the so-called the outer surface of the processed in a double spindle API checking and pipes is protected against threading lathe. After threading, registration system of the corrosion by applying the finished couplings are tested production line where solvent-free UV varnish. in a measuring station and then they are measured, The pipes are then dried phosphatised. weighed, marked and by using state-of-the-art inspected again. UV technology. Finally, the phosphatised couplings are screwed onto the pipes in the Subsequently, the threading shop. finished pipes are bound into customer-specific Axle Tube Production bundles at the bundling station and transferred to The production of axle tubes for the shipping department. the automotive industry takes place in a fully automated production Coupling Production line (cutting, deburring, blasting, cleaning, weighing, marking, Seamless pipes are used rustproofing, packaging). as source material for manufacturing couplings. Individual coupling hollows are fed into

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 15 ORGANIZATION CHART OF PRODUCTION

16 ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 17 AWARDS

» 2006 EMAS Award Certificate » 2013 klima:aktiv Award Certificate » 2013 EMAS Award Certificate » 2014 ÖKOPROFIT Award Certificate » 2014 klima:aktiv Award Certificate » 2014 ÖKOPROFIT Club Award Certificate » 2014 Styrian Health Award » 2015 WHP Quality Certificate » 2015 klima:aktiv Award Certificate » 2015 ÖKOPROFIT Club Award Certificate » 2016 klima:aktiv Award Certificate » 2016 ÖKOPROFIT Club Award Certificate » 2017 EMAS Award Certificate

18 ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 19 MANAGEMENT POLICY The basis of the effectiveness and of the continuous improvement process of the Management System are the high qualifications and distinctive Our Management System is based on the requirements of national personal responsibility of all employees, the modern and state-of-the-art and international standards or specifications such as ISO 9001, API installations, as well as risked-based thinking in connection with all relevant Specification Q1, ISO 14001, ISO 50001 and OHSAS 18001, and, at the processes. same time, adheres to all statutory and legal requirements.

The focal points of the Management System are the criteria: quality, environment, energy, safety and health protection.

To us, quality means: • Flawless products • Customer orientation and customer satisfaction • Fulfilment of customer requirements • Clear responsibilities and controlled processes • Flexibility and reliable delivery

To us, safety and health protection means: • Safe work places, working equipment and installations • Protection of employees - creation of awareness • Minimisation of accident risks - accident prevention - accident avoidance • Health promotion - order & cleanliness

To us, environment protection means: • Conservation of resources - minimisation of emissions • Avoidance of impact on the environment • Legal Compliance

To us, energy management means: • Increase in energy efficiency - reduction of energy cost • Use of renewable energy sources • Life-cycle management and sustainability

20 ENVIRONMENTAL IMPACT ASSESSMENT

Output (t) THE RELATIONSHIP OF THE COMPANY WITH THE 500,000

ENVIRONMENT 400,000 329,592 310,995 288,955 284,500 217,287 255,846 437,158 255,345 433,549

426,926 300,000 414,872 voestalpine Tubulars GmbH & Co KG produces seamless steel pipes at the Kindberg 400,616 414,894 398,318 209,890 plant. The plant‘s annual production capacity is approx. 420,000 tons of pipes with 395,110

337,999 200,000 external diameters ranging from 26.7 to 193.7 mm (3/4“ to 7 5 /8“). The company‘s 133,886 activities result in an impact on the environment which is especially attributable 100,000 to production-related solid and liquid waste, wastewater, waste air and energy 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 consumption.

As far as products, production processes, facilities, raw materials and operating supplies are concerned, there have been no significant changes that require adjustments to the environmental management system and the evaluation of the environmental aspects since the Environmental Statement in 2016. Number of employees 1,500 All environmental aspects related to the production of seamless pipes are recorded, 1,222 documented in a register, and regularly updated. Environmental objectives are 1,207 1,174 1,000 1,092 1,106 1,103 1,050 1,050 1,023 1,015 derived from the evaluation of environmental aspects and the necessary measures 953 1,005 884 823 890 are taken for achieving these objectives. 799 756 646 500 When we implement new processes, commission new installation or use new materials, we analyse and consider the resulting impact on environmental aspects. 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 21 THE ENVIRONMENTAL ENVIRONMENTAL AND SAFETY PROGRAM PERFORMANCE OF THE The jointly designed Environmental and Safety Program for the FY 2016/17 (April 1, 2016 to March 31, 2017) defined 42 environmental and safety objectives in the COMPANY areas, input materials, storage, waste, waste air, wastewater, energy, as well as health and safety.

5 objectives were continued from the 2015/2017 program, of which 3 objectives were implemented and 2 objectives are being continued in the 2017/2018 program.

Implemented objectives:

• Drawing-up of a skin protection plan and of a company-wide skin protection program – survey of the current situation completed. The pilot project was started at the coupling production – ongoing implementation throughout the plant based on the results of the pilot project.

• Energy savings at the UV pipe varnishing plant in the threading unit by the optimized use of UV lamps. • Improvement in safety by completing the safety fences in the area of UNIGRAV 500 of the boiler pipe finishing plant

Objectives still being implemented:

• Savings of approx. 120,000 Nm3 compressed air per year by changing from a two nozzle to a one nozzle system (phosphate) in the mandrel bar greasing area in the hot pipe production of the Seamless Pipe Plant.

• Protection of coupling transport in the area of the elevator and the trolley by means of installing various protective fixtures

Of 42 environmental, health and safety objectives into the FY 2016/17, 35 were accomplished on time.

22 3 objectives could not be implemented, or the target was not achieved.

• Further improvement in the cleaning stations by adapting the brush system and the washing unit, as well as improved use of the cleaning medium in the area of Research and Development – not implemented (tests did not deliver the desired result) • Reducing the risk of accidents when crossing the road between the coupling shop and the protective cap shop by installing footpath markings incl. optical lighting – not implemented (building alterations are planned in the area of the halls) • Increasing the health rate to > 96.7% by further strengthening the presence of the CHM – not achieved (current status 95.77%) Realization of environmental, health and safety objectives FY 2016/17 4 objectives will be continued in the 2017/18 program with new deadlines 10 32 42 35 4 3 • Access to all plant areas without the need for any hazardous driving manoeuvres by purchasing a modern crane with suitable approach dimensions and adapted safety technology – ongoing investment project being continued into the FY 2017/18 – installation during summer 2017

• Facilitating the operational process and reducing the risk of tripping by removing unused rail parts and establishing a flat surface – investment project in the FY 2017/18

• Improvement in the information on the contents of containers and pipes by

marking containers and pipes that contain hazardous materials – ongoing objectives 2016/17 objectives 2016/17 objectives 2016/17 project to be continued into the FY 2017/18 (continuation 2017/18) Total number of environmental and safety objectives 2016/17 Objectives that were not realised Total number of health and safety Objectives still being implemented • Decrease in the level of stress at the workplace of crane drivers, and with it a Total number of environmental, health reduction in the potential for accidents by installing new, adapted and suitable Realised environmental, health and safety air-conditioning in the cranes at the boiler pipe finishing unit – ongoing project to be continued into the FY 2017/18

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 23 INPUT MATERIALS

Three individual objectives were defined in the area of input materials, two of which were realised on time. One objective was not realized, as the tests did not show satisfactory results.

• Avoidance of VOC emissions by using VOC-free cleaning agents at various washing stations in the threading shop – implemented

• Improvement in the cleaning performance, as well as an increase in the duration of the resting period of the degreasing bath by installing a microfiltration installation for the preparation of the degreasing bath in the phosphatizing plant of the coupling shop – implemented

• Further improvement in the cleaning stations by adapting the brush system and the washing unit, as well as an improved use of the cleaning medium in the area of the thread test center – not implemented (tests not successful)

24 STORAGE

In the area of storage, 1 individual objective was set and implemented on time.

• Environmentally sound dismantling of the waste oil tank and the related infrastructure (barrel press, storage areas, …) by dismantling the waste oil tank and reinforcing the area, as well as redesigning the interior area and creating storage capacity for plant spare parts – implemented

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 25 WASTE

In the area of waste, 1 individual objective was set and implemented on time.

• Improvement in waste disposal logistics by setting up a central, roofed collection point to store waste material of all kinds in the area of the boiler pipe finishing plant until the material is collected by the disposal companies – implemented

WASTE AIR

In the area of waste air, 2 individual objective were set and implemented on time.

• Extraction of scale from the pipe body prior to processing at the pick-up machine by removing the de-dusting unit from the commercial pipe finishing plant and installing it in the area of the new workshop (pillars D 28 / 29) – implemented

• Minimization of NOx emissions from the annealing furnace in the OCTG finishing plant by substituting the burners with flameless low-NOx burners – implemented

26 WATER/WASTEWATER

In the area of water/wastewater, 2 individual objective were set and implemented on time.

• Saving approx. 40 m³/h well water by supplying the Bemers equipment with OC water (open circuit) and by installing a band filter system – implemented

• Reduction of solids content, and additional safeguards against oil leaks into the river Mürz by installing flocculant test equipment in the hydraulics works of the Seamless Pipe Plant – implemented

ENERGY

One individual objective was defined and realised on time in the area of energy.

• Improving the accounting process by preparing a concept for the inclusion of all gas counters in the Kindberg plant – implemented

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 27 HEALTH

In the area of workplace safety, 5 objectives were defined, 3 of which were realised on time. One objective will be continued into the FY 2017/18, and one objective did not reach its target.

• Avoidance of oil mist during inductive heating in the area of calibra- tion line 1 in the threading unit by installing oil mist extraction equipment – implemented

• Preparing a concept for the implementation of the project ‘Age-appropriate Working’ by the focus group ‘Age-appropriate Working’ – implemented

• Improvement in the degree of awareness of the Health Center by means of marketing and information campaigns – at least 10 different projects or events in the Health Center - implemented

• Decrease in the level of stress at the workplace of crane drivers, and with it a reduction in the potential for accidents by installing new, adapted and suitable air-conditioning in the cranes in the boiler pipe finishing unit – partially implemented (continued into the FY 2017/18)

• Increase in the health rate (total) to > 96.7% by further strengthening and maintaining the presence of CHM – not achieved (current health rate lies around 95.77%)

28 SAFETY

In the area of workplace safety, 27 objectives were defined, 23 of which were realised on time. Three objectives are being continued into the FY 2017/18. One objective was not realised as the framework conditions had changed (workshop expansion).

• Improvement in safety of the push bench process by adapting the soft- ware of the existing DOI installation to include identification of the CPE head and cone of the mandrel bar – implemented

• Improvement in safety at work in the area of lateral transport RRM10/180 to the Rotomat by installing a metal lattice grate – implemented

• Improvement in safety at work in the testing press area by installing a collision protection (solid steel structure) at the press control stand – implemented

• Improvement in safety by completing the existing safety fencing by fitting safety fencing at inadequately secured places of the Special Pipe Finishing Plant – implemented

• Improvement in communication possibilities at the new HT by renewing and upgrading the crane wireless system – implemented

• Improvement in safety at work in the area of the incoming goods trough (noise, mechanical hazards) by setting-up a shearing trough with scales and with adequate safety and protection technology – implemented

• Safe, glare-free working when the sun is low in the area of the bundling stations by installing shades – implemented at bundling station 2

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 29 • Minimizing the risk of accident on the way from the access gate to the changing rooms via the coupling billet storage facility by installing a covered footpath between roller shutters MT11 and MT9 – implemented

• Improvement in personal safety by revising the circuit switching logs for the activation of electrical installations – implemented

• Increase in the safety of personnel and of the installation during switching in the area of substation SPP3 by renewing the primary and secondary technology - implemented

• Minimization of risks and damage in emergencies in both server rooms by revising the emergency plan regarding shutting down/starting up and the switching off of servers in emergency situations – implemented

• Improvement in safety during the heating-up of the rotary hearth furnace by installing, and including, 5 conventional cold air burners in the regenerative area 3 of the furnace control – implemented

• Increase in safety at work in the area of the rap milling machine by modifying the controls - implemented

• Reduction in accident frequency (LTIFR) by 10% from the average value in FY 2015/16 by improving awareness through focus on ‘Safety at Work’ – implemented

• Regular adaptation of targets and key items in the area of occupational safety and health by setting-up a steering group that meets twice a year and defines measures and key items - implemented

• Presentation of current topics regarding safety at work to the Management Board and Plant Managers during the monthly Plant Manager Meeting – implemented

30 • Increase in the number of reports on near-accidents by establishing a reporting form on the intranet and by raising awareness in the 15 minute reflection on safety to encourage the reporting of near-accidents - implemented

• Access to all plant areas without the need for hazardous driving manoeuvres by purchasing a modern crane with suitable approach dimensions and adapted safety technology – ongoing investment project - crane installed during summer 2017 (continued into the FY 2017/18)

• Facilitating the operational process and reducing the risk of tripping by removing unused rail parts and establishing a flat surface – ongoing investment project (continued into the FY 2017/18)

• Improvement in information on the contents of containers and pipes by • Further development of safety instructions by preparing summaries of marking containers and pipes that contain hazardous materials – ongoing existing instructions in the form of PowerPoint slides, and including instruction project (continued into the FY 2017/18) topics in the 15 minute reflection on safety – implemented • Reducing the risk of accidents when crossing the road between the coupling • Increase in involvement of employees concerning occupational safety and shop and the protective cap shop by installing footpath markings incl. optical health by including safety officers in regular on-site inspections - implemented lighting – not implemented (conditions have changed, the workshop will be extended) • Improvement in communication between safety officers by introducing SO meetings for exchanges of experiences – implemented

• Improvement in the perception of key topics in the area of occupational safety and health by extending focussed training by means of on-site inspections, posters, etc. – implemented

• Review of safety-related ideas from the Employee Suggestion Scheme by regular on-site inspections of implemented safety suggestions – implemented

• Continuous quality improvement in the 15 minutes reflection on safety by or- ganizing a biannual exchange of experiences for the moderators - implemented

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 31 ECOLOGICAL BALANCE SHEET

32 MATERIAL AND ENERGY BALANCE SHEET 2016 Input: Output:

Circulating materials (input in t) 287,337.981 Products and packaging (in t ) 256,065.466 Raw materials 286,026.000 Products 255,345.080 Auxiliary material and operating supplies 591.595 Packaging of products 720.386 Waste, recoverable materials and recyclable waste (in t) 59,327.454 Packaging for products 720.386 Existing substances 100.756 Recoverable materials 42,990.807 Gases (input in m³) Non-hazardous waste 365.560 Technical gases / test gases 777,074.626 Non-hazardous waste (special projects)*) 14,909.360 Hazardous waste 960.971

Water (input in m³) 2,000,134 Wastewater (output in m³) 1,648,312

Drinking and washing water 53,242 Sanitary grey water (indirect discharge) 47,119 Process water from wells 1,946,892 Industrial wastewater (indirect discharge) 118 Industrial wastewater (direct discharge) 1,601,075 Compressed air (production in m³) Waste air (emissions in t) 50,631.119 Compressed air 42,627,800 Total of gaseous emissions 50,606.641 of which CO2 : 50,591.227 t Remainder (CO, NOx, SO2, Ctot, CxHy) : 15.414 t Dust 4.116 Solvent emissions 20.362 Energy supplies Energy consumption (MWh) 336,997.492 Electricity (MWhel) 56,001.14 8 Energy conversion (electricity) 56,001.14 8 Natural gas (m³) 25,206,823.000 Thermal energy (natural gas) 279,795.735 Heating oil (litres) 295.990 Heating energy (heating oil) 3.133 Fuel (litres) 120,860.830 Driving energy (fuel) 1,197.476

*) Special projects (construction projects) – consists of construction waste

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 33 INPUT MATERIALS Auxiliary materials used Description of the input materials Quantity in kg Quantity of raw materials used 286,026 kg (steel billets) Oils 174,069.04 - hydraulic oil 157,183.00 - gear oil 15,014.25 - compressor oil 1,275.46 - engine oil 180.00 - other oils 116.33 Lubricants 141,828.62 - grease 35,818.62 - thread grease 47,195.00 - mandrel bar lubricant 58,815.00 Paints and varnishes 110,087.24 - marking paint, enamel paint 12,203.24 - rust-proofing varnish 1,440.00 - UV varnish 96,020.00 - marking ink 424.00 Solvents 17,291.85 Solvents without VOC content 2,080.00 Oil binding agents 5,625.00 Corrosion protection agents / rust removing agents 30,888.79 Metal treatment agents / cooling lubricants 30,349.30 Cleaning agents 12,252.21 Sealing agents / adhesive materials 39.36 Antifreeze agents 100.00 Cold-galvanising agents 54.00 Phosphatising agents 46,030.00 Water treatment agents 30.00 Fluxing agents 3,246.10 Chemicals 17,623. 45 Total of auxiliary materials and operating supplies: 591,594.96

Gases Volume in m³ - acetylene 2,304.590 - argon 1,337.730 - propane gas 44.000 - oxygen 761,407.000 - nitrogen 10,638.000 - gaseous mixture (argon-CO2) 879.100 - hydrogen sulphide 382.800 - hydrogen sulphide - nitrogen 74.000 - hydrogen sulphide – CO2 7.4 06 Total of gases 777,074.626

34 WASTE

Non-hazardous waste, recoverable materials, and recyclable waste:: Utilisation routes of valuable substances Quantity 2016 Cement industry (Lafarge Perlmoser, Wietersdorfer & Code no. Description Disposal Scale (in kg) Peggauer), chemical industry (Donau Chemie) 17202 Waste wood, not treated 86,520 as required voestalpine Donawitz / Breitenfeld / Kroneisl / Scrap 31103 Linings and refractories 28,060 as required Schrott Waltner 31409 Construction waste 125,380 as required Shavings Schrott Waltner 31416 Mineral fibres 1,040 as required 39905 Remains of fire-extinguishing powder 430 as required 57129 Thermo-Mix 9,620 monthly 35103 Thermal mix 2,560 as required 57129 Polluted scrap iron 4,400 as required 57129 Solid plastics with iron parts 1,920 as required 57129 Plastics (protective caps) 3,220 as required 31434 Plastics, cured 2,260 as required 31444 Filter and absorbent material 13,180 as required 91101 Abrasives 86,970 every 4 weeks Quantitative development of recyclable waste Total of non-hazardous waste: 365,560 150

31468 White glass 820 every 4 weeks 120 100.76 31469 Coloured glass 840 every 4 weeks 138.62 138.49 135.77

130.99 90

35105 Metal packaging 980 every 4 weeks 124.61 121.88 121.08 120.10 120.79 111.38 106.34 92401 Organic waste 21,304 every 14 days 104.73 60 91201 Cardboard 58,190 every 14 days 32.50 73.10 73.14

66.21 30 91207 Lightweight fraction packaging 18,622 every 14 days 63.47 46.74 Total of existing substances: 100,756 0 35102 Scale 8,171,6 40 as required 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 35103 Scrap 30,229,997 as required 35103 Shavings 4,589,170 as required Total of valuable substances: 42,990,807

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 35 Code no. Description Quantity 2016 (in kg) Hazardous Quantitative development of non-hazardous waste: 31637 Phosphatising sludge 35,300 waste 1,200 17209 Wood, impregnated with tar 318 34437 Asbestos waste 632 1,000

31108 Linings and refractories 6,360 670.15 800 563.53

35322 Lead storage batteries 1,400 503.47 1,000.57

450.98 600 401.78 404.61 392.73 392.73 365.56 35338 Batteries, unsorted 316 361.84 346.00 313.85 295.13

256.96 400 224.59 35326 Mercury-vapour lamps 94 216.04 183.36 129.28 35339 Fluorescent tubes 332 200 52102 Acids and acid mixtures 70 52402 Leaches and leach mixtures 1,133 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 52716 Metallic salt containing concentrates 1,885 59305 Laboratory waste 32 55301 Acetone 250 54102 Waste oil 56,200 54104 Motor fuel 47 Quantitative development of hazardous waste: 54201 Oil sludge 39,740 2,000 54202 Grease 17,520 54402 Emulsions 198,040 1,500 1,426.61 1,349.14 1,344.10

54408 Oil-water mixture 427,460 1,237.34 1,146.16 1,996.64 976.92 991.02 967.87

54702 Oil separator contents 5,740 892.91 851.20 850.70 843.49

836.26 1,000 1,592.37 664.74

54717 Sludge from container cleaning 38,410 1,499.91 548.32 54926 Used oil absorption material 2,221 500

54913 Tar residues 1,160 960.97 54930 Oil-contaminated operating supplies 55,040 0 55502 Paint and varnish residues 14,219 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 55509 Printing ink residues, copier toner 104 57127 Plastic containers with hazardous content 7,668 59906 Industrial dross containing oil 9,600 59803 Spray cans 1,256 58201 Filter cloths/filter bags 6,383 Waste generated in relation to output (production for interim storage): 35212 Monitors 83 6 35205 Refrigeration units <180cm 106 32206 Refrigeration and air-conditioning units 951 3.76 5.59 35201 Electronic waste 15,480 4 35202 Electronic equipment, waste 60 35220 Electrical equipment over 50 cm 231 1.43 35221 Electrical equipment 9,450 2 35342 Cables with hazardous insulating material 5,680 0.40 Total of hazardous waste: 960,971 0

kg waste

36 per ton of product kg hazardous waste per ton of product per ton of product per ton of product kg existing substances kg non-hazardous waste WATER/WASTEWATER 1,200

1,000 Sanitary wastewater: Drinking and washing water consumption; 53,242 m³ 800 Sanitary wastewater: 47,119 m³ 600

400 Industrial wastewater:

200 Wastewater sub-flow of industrial wastewater: • Sedimentation for wastewater from the SEPP 0 • Gravel filters for wastewater from the CT plant • Neutralisation of wastewater from phosphatising • Flotation for wastewater from the upsetting plant • Acid gas laboratory, flue gas scrubber (indirect discharge): 118 m³

2,000

1,500

1,000

500 Measuring station: CT-discharger partial flow CT1 (external analysis June 15/16, 2016) 0 Limit value Measuring Interval of Measuring result Parameters per official result external internal internal analysis notification analysis monitoring Temperature 30 °C 19.1°C - continuous pH-value 6.5 – 8.5 8.36 - continuous 6 Filterable substances 22.5 mg/l <1.0 mg/l 2.73 mg/l weekly Iron 0.9 mg/l <0.01 mg/l - not specified 4 COD 22.5 mg/l <15 mg/l - not specified Hydrocarbon index 0.9 mg/l <0.08 mg/l 0.13 mg/l every 14 days 2 TOC 7.5 mg/l 1.0 mg/l - not specified Volume of waste water 160 m³/h 82.80 m³/h 85.82 m³/h continuous 0

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 37 Measuring station: Flotation partial flow CT 2 (external analysis June 15/16, 2016)

Limit value Measuring Interval of Measuring result Parameters per official result external internal internal analysis notification analysis monitoring Temperature 30 °C 20.8 °C - continuous pH-value 6.5 – 8.5 7.33 - continuous Filterable substances 50 mg/l 8.50 mg/l 4.94 mg/l every 14 days Iron 2.0 mg/l 0.01 mg/l 0.10 mg/l every 14 days Aluminium 2.0 mg/l 0.05 mg/l 0.32 mg/l every 14 days Ammonium 10.0 mg/l 0.011 mg/l 0.06 mg/l every 14 days Boron meas. value 2.66 mg/l - not specified Hydrocarbon index 10 mg/l < 0.08 mg/l 0.11 mg/l every 14 days COD 150 mg/l < 15 mg/l 16.91 mg/l every 14 days Volume of wastewater 8 m³/h 0.54 m³/h 0.41 m³/h continuous

38 Measuring station: Neutraliser (external analysis June 15/16, 2016)

Limit value Measuring Interval of Measuring result Parameters per official result external internal internal analysis notification analysis monitoring Temperature 30 °C 18.6 °C - continuous pH-value 6.5 – 9.0 8.21 - continuous Filterable substances 50 mg/l 2.50 mg/l - not specified Iron 2.0 mg/l 0.07 mg/l 0.29 mg/l every 14 days Manganese 1.0 mg/l 0.16 mg/l 0.41 mg/l every 14 days Nickel 0.5 mg/l 0.098 mg/l 0.17 mg/l every 14 days Fluoride 20 mg/l 0.17 mg/l - not specified Nitrate 40 mg/l 3.38 mg/l - not specified Total phosphorus 2.0 mg/l 1.02 mg/l 0.69 mg/l every 14 days Total tensides 3.0 mg/l < 0.20 mg/l - not specified Hydrocarbon index 5.0 mg/l < 0.08 mg/l - not specified COD 200 mg/l < 15 mg/l 26.35 mg/l weekly Volume of wastewater 2 m³/h 1.06 m³/h 0.75 m³/h daily

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 39 Measuring station: Compressor condensate (external analysis June 16, 2016)

Limit value Parameters per official Measuring result notification pH-value 6.5 – 8.5 7.86 No COD 90 mg/l < 15 mg/l internal monitoring Hydrocarbons 5.0 mg/l 0.50 mg/l mandatory!

The compressor condensate does not enter directly into the discharge system, but is fed into the open water circuit in the seamless pipe plant's water man- agement system (see table Seamless Pipe Plant SPP).

Measuring station: Acid gas laboratory, flue gas scrubber (external analysis April 7, 2016) Limit value Parameters acc. to Measuring result contract pH-value 6.5 - 9.5 9.10 No Filterable substances 150 mg/l 12.8 mg/l internal Sulphide 0.5 mg/l <0.025 mg/l monitoring Temperature max. 35°C 21.5°C mandatory! Volume of wastewater 0.50 m³/d 0.27 m³/d

The water does not reach the pre-flooder, but is directly discharged into the public sewer system in accordance with the disposal contract.

40 Measuring station: Seamless pipe plant SPP (external analysis June 15/16, 2016) Limit value Measuring result Measuring result Interval of Parameters per official external analysis internal monitoring internal monitoring notification Temperature 30°C 28.7°C - continuous pH-value 6.5 - 8.5 8.16 - continuous Filterable substances 50 mg/l 9.20 mg/l 14.87 mg/l daily Iron (filtered) 0.5 mg/l 0.01 mg/l 0.10 mg/l daily COD 50 mg/l <15 mg/l 18.42 mg/l daily Hydrocarbon index 5.0 mg/l <0.08 mg/l 0.20 mg/l weekly Phosphorous (filtered) 2.0 mg/l 0.24 mg/l - not specified Phosphorus (total) 3.0 mg/l 0.45 mg/l 0.48 mg/l daily Volume of wastewater 150 m³/h 130.50 m³/h 95.79 m³/h continuous

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 41 Specific water/wastewater volumes in relation to the production volume 20 16.38

Water 16 consumption 12 9.73 9.70 9.69 Volume of 14.50 7.79 8.01 7.83 wastewater 7.28 7.06 7.06 7.73 6.53 6.87 6.72 6.25 8 5.78 5.38 5.26

4 7.78 7.72 7.60 6.53 7.00 6.70 6.60 6.46 5.62 5.17 5.32 5.58 5.26 5.77 5.19 5.33 5.12 0 Total wastewater load 2016: 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Maximum Annual Parameters permissible load in kg load in kg Filterable substances 100,740 14,5 47.55 COD 79,716 15,690.56 Hydrocarbons 8,532 265.95 Phosphorous 2,663 4 07.33 Iron 832 86.18 Ammonium 701 0.21 Aluminium 140 1.14 Utilization of maximum permissible wastewater loads in %: 20 Nickel 9 1.12 Manganese 18 2.71 20 15 The total loads result from the average wastewater concentrations based 15 15 10 14 on internal analyses and the volume of annual wastewater of the sub-flows. 13 10 3 5 1 0

0

Iron COD Nickel Aluminium Phosphorous Ammonium Manganese Hydrocarbons

Filterable substances

42 Ground water analysis

In the area of the decommissioned construction debris landfill, ground water analyses must be performed every two years

Measuring point construction waste landfill: At the front of and the back of the fill. (external analysis June 24, 2015) Measured value Measured value Parameters Unit at the front of at the back the fill of the fill Depth m 8.70 9.68 Temperature, water °C 10.8 10.1 pH-value - 7.46 7.41 Electrical conductivity µS/cm 596 674 Acid capacity up to pH 4.3 mmol/l 4.0 4.4 Carbonate hardness °dH 11.2 12.3 Total hardness °dH 12.6 14.0 Ammonium (NH4+) mg/l < 0.01 < 0.01 Nitrate (NO3-) mg/l 6.27 7.65 Nitrite (NO2-) mg/l < 0.01 < 0.01 Chloride (Cl-) mg/l 56.5 58.2 Sulphate (SO4--) mg/l 23.3 24.0 Total iron mg/l 0.014 0.013 Total manganese mg/l 0.0015 0.0012 TOC mg/l < 1.0 1.10 Total hydrocarbons mg/l < 0.020 < 0.020

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 43 WASTE AIR

Waste air assessment: The basis for calculating the emissions in waste air were the consumption of Individual waste air data: natural gas (25.206.823 m³) and diesel fuel (120,506 l) in 2016. Calculated emissions in waste air from natural gas and fuel consumption gaseous in kg/t emissions in t/a Product

CO2 50,591.227 198.129 CO 1.260 0.0049

NOx 10.350 0.0405

SO2 0.517 0.0020

Ctotal 3.277 0.0128 C H 0.010 0.00004 x y Total emissions (in kg waste air per ton of steel pipe produced): 300 Total quantity of dust

250 Dust emissions in kg/t in t/a Product 200

280.78 Dust from filter units 3.846 0.015 150 Dust from natural gas 0.252 0.001 212.38 202.73 197.62 198.29 192.79 194.26 192.55

187.36 100 189.38 176.24 176.80 174.62 175.43 Solvents 171.93 173.73 173.66 169.83 50 Solvent emissions in kg/t 0 in t/a Product 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Solvent emission from solvent- 19.853 0.078 containing materials Solvent emission from diesel 0.509 0.002

44 The percentage of solvents in the materials used is made up of different volatile organic compounds (VOC) which are listed in the following table:

Solvent emissions from the use of solvent- Quantity Description containing operating supplies: in kg/year Solvents used in kg 26,501.47 1-Methoxy-2-Propanol 215.16 Solvent emissions in kg 19,852.92 2-Aminoethanol 36.00 Solvent waste in kg 6,648.55 2-Butanone 724.52 2-Methoxy-1-Methylethylacetate 1,793.14 4-Hydroxy-4-methyl-pentanone-2 67.95 Acetone 11,35 4.18 Butanol 1,045.27 Dichloromethane 4 4.10 Dimethyl benzene 5.99 Dimethyl ether 3.30 Ethanol 544.34 Ethanolamine 654.00 Ethyl acetate 191.34 Isobutyl acetate 1,575.59 HC mixtures 719.95 n-Butyl acetate 1,275.37 Naphtha 588.91 Propane 72.00 Propanol 8.62 White spirit 883.43 Toluene 4,675.88 Xylene 22.53 Total: 26,501.47

The use of diesel fuel results in additional 509kg of solvent-containing emissions which increase the total amount of solvents emitted in waste air to 20,361.92kg.

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 45 ENERGY

Energy supplies Energieverbrauch (MWh) 336,997.492 Electricity (MWhel) 56,001.14 8 Energy conversion (electricity) 56,001.14 8 > of which renewable energy: 56,001.148 (MWh) = 100% Natural gas (m³) 25,206,823.000 Thermal energy (natural gas) 279,795.735 Heating oil (litres) 295.990 Heating energy (heating oil) 3.133 Fuel (litres) 120,860.830 Driving energy (fuel) 1,197.476

Total energy consumption (electricity, natural gas - fuel) in MWh per t of steel pipe produced: 2.0

1.852 1.5

1.405 1.335 1.320 1.284 1.232 1.263 1.262 1.243 1.0 1.145 1.134 1.156 1.161 1.145 1.130 1.153 1.125 1.314

0.5

0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

46 ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 47 TRANSPORT

All raw materials (continuous cast billets) are delivered to the plant by rail.

The majority of finished goods are delivered by rail (68%), a minor part by truck (32%). Trucks are used for transport between the individual production facilities at the site. INDIRECT ENVIRONMENTAL ASPECTS

The product, seamless pipes, does not cause any damage to the environ- ment as a result of its use, recycling or disposal. The product, when used, is therefore environmentally neutral and generates no emissions when correctly employed. At the end of their useful life, the pipes can be re-used as a secondary material (scrap) by the iron and steel industry, which means they are 100 % recyclable. In the event that these pipes are disposed of in a landfill, no environmentally relevant effects are expected.

When developing and designing the pipes, the specifications are mainly given by the customer and depend on the purpose of use, which means that the company has little influence over them.

As far as transport is concerned, it should be mentioned that voestalpine Tubulars customers operate on a global basis and the main means of worldwide transport of finished pipes are rail and sea.

When procuring environmentally relevant products and services, we ad- here to our quality management system and take environmentally related criteria into account. We pay particular attention to the purchasing of aux- iliary material and operating supplies, packaging and technical material so that there is the least possible environmental impact. The selection, evalua- tion and approval of suppliers are also oriented on environmental aspects.

48 voestalpine Tubulars‘ regulations on safety and the environment apply not only to its employees, but also to all contractors and sub-contractors work- ing at the Kindberg plant who have to comply with them.

It is difficult for the company to influence the volume of traffic generated by the employees on their way to and from their workplace. However, the plant is served by public buses and, therefore, public transportation could be used. In view of the rural character of the area around the site and the related, insufficient public transport network servicing it, most employees are forced to use their own vehicles on their way to and from work. There is sufficient parking space available in the immediate vicinity of the plant.

33% of the employees are located in the Kindberg area, 52% of the employ- ees live in a range of <20km around Kindberg and the remaining approx. 15% of the employees have to travel more than 20 km to work.

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 49 ENVIRONMENTAL INDICATORS

The environmental indicators and figures are based on an input/output Production volume = hot pipe production for interim storage analysis. Absolute figures are not considered as environmental indicators, Production volume 2016: 255,345.08 t but rather the specific values in relation to the relevant production volume.

THE BALANCE SHEET SHOWS THAT FOR THE PRODUCTION OF 1,000 KG STEEL PIPE, 1,120.155 KG RAW MATERIALS ARE REQUIRED; THIS CORRE- SPONDS TO AN OUTPUT OF 89.27%.

50

Emissions: 198.285 kg Water: 7.834 m3 CO2: 198.129 kg Energy supplies Drinking and washing CO: 0.0049 kg water: 0.209 m3 Electricity: 0.219 MWh NOx: 0.0405 kg Natural gas: 98.717 m3 Industrial water from SO2: 0.0020 kg Heating oil: 0.001 l the well : 7.625 m3 Ctotal: 0.0128 kg Fuel: 0.473 l Compressed air: 166.942 m3 Dust: 0.016 kg Solvents: 0.080 kg

Steel block: 1,120.155 kg Steel pipes: 1,000 kg PRODUCTION Heating - rolling - finishing - upsetting - heat treating - testing - thread cutting - Packaging: 2.821 kg coupling production - preserving

Auxiliary material and operating supplies: 2.317 kg Recoverable materials: Oil, lubricants, paint and varnish, 168.364 kg solvents, corrosion inhibitors, Shavings, scale, scrap Metal treatment agents, phosphatizing agents, cleaning agents, oil absorbents, etc. Non-hazardous waste: 1.432 kg Non-hazardous Commercial waste, waste: 58.389 kg construction waste, Wastewater: 6.455 m3 Special projects waste wood, Sanitary wastewater: (construction waste) plastics, etc. 0.185 m 3 Industrial wastewater: 6.270 m3 Energy consumption: 1.320 MWh Hazardous waste: Electricity: 0. 219 MWh 3.763 kg Thermal energy (natural gas): Linings and refractories, oil 1.096 MWh sludge, electronic waste Operating power: 0.005 MWh Existing substances: Emulsions, oil-water 0.395 kg mixtures, etc.

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 51 Trends in the company's environmental indicators since 1998 - INPUT

Water Compressed air Water consumption in m³/t Natural gas Electricity 18 INPUT consumption consumption in m3/t in MWh /t in m3/t in m3/t el 15

1998 12.40 189.14 126.61 0.274 16.38 12 1999 16.38 224.23 140.04 0.293 9 12.40 2000 7.28 158.38 96.66 0.208

9.73 6 9.70 9.69 8.01 7.83 7.79 7.73

2001 7.79 141.43 93.32 0.194 7.28 7.06 7.06

6.87 3 6.72 6.53 6.25 5.78 5.38 2002 9.73 160.02 100.94 0.211 5.26 0 2003 9.70 148.61 95.95 0.195 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2004 7.06 132.68 96.08 0.192 2005 6.53 125.80 87.4 0 0.171 2006 6.87 121.26 86.51 0.170 2007 7.06 130.51 87.78 0.178 2008 6.72 130.87 88.08 0.179 2009 9.69 170.53 105.72 0.227 2010 7.73 141.92 94.37 0.191 2011 6.25 168.46 86.56 0.180 2012 5.78 175.31 85.66 0.175 2013 5.38 166.40 86.96 0.18 4 2014 5.26 159.37 84.59 0.182 2015 8.01 179.55 98.39 0.217 2016 7.83 166.94 98.72 0.219

52 Compressed air consumption in m³/t Natural gas in m³/t 18 300 150

15 250 120

12 200 140.04 90 126.61 9 150 224.23 105.72 98.72 98.39 100.94

96.66 60 95.95 96.08 94.37 93.32 189.14 87.78 87.40 88.08 86.96 86.56 100 86.51 85.66

6 179.55 84.59 175.31 170.53 166.94 168.46 166.40 159.37 160.02 158.38 148.61

141.92 30 141.43 132.68 130.87 50

3 130.51 125.80 121.26 0 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Electricity in MWh/t 0.35 0.30 0.25

0.293 0.20 0.274 0.15 0.227 0.219 0.217 0.211 0.208 0.194 0.195 0.192 0.191 0.18 4 0.182 0.179 0.180

0.178 0.10 0.175 0.171 0.170 0.05 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 53 Trends in the company's environmental indicators since 1998 - OUTPUT

Non-hazardous waste in kg/t Non-hazardous Hazardous Energy Wastewater Waste air 2.0 OUTPUT waste waste consumption in m3/t in kg/t 1.87 in kg/t in kg/t in MWh/t 1.5 1.62 1.64 1998 0.68 3.56 11.37 253.9 1.683 1.43 1.35 1.29 1999 0.59 4.28 14.50 280.8 1.852 1.13 1.18 1.0 1.02 0.93 0.95 0.91 0.87 2000 0.48 2.96 6.53 194.3 1.284 0.79 0.68 0.67 0.5 0.59 0.62 2001 0.62 3.01 5.62 187.4 1.232 0.48 2002 1.35 3.82 7.00 202.7 1.335 0 2003 0.91 3.14 7.78 192.6 1.263 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2004 0.67 2.69 6.70 192.8 1.262 2005 0.79 2.88 5.17 175.4 1.145 2006 1.62 2.98 5.32 173.7 1.134 2007 1.13 3.37 5.58 176.2 1.156 2008 1.02 2.26 5.26 176.8 1.161 2009 1.87 4.05 7.72 212.4 1.405 2010 0.87 2.86 6.60 189.4 1.243 2011 1.18 3.34 5.77 173.7 1.145 2012 0.93 3.10 5.19 171.9 1.130 2013 0.95 4.81 5.33 174.6 1.153 2014 1.29 3.43 5.12 169.8 1.125 2015 1.64 5.51 7.60 197.6 1.314 2016 1.43 3.76 6.46 198.3 1.320

54 Hazardous waste in kg/t Waste air in kg/t 2.0 6 300

5.51 1.5 4.81 4 280.8 200 253.9 4.28 4.05 1.0 3.82 3.76 3.56 212.4 202.7

3.43 197.6 3.37 3.34 198.3 192.8 194.3 192.6 189.4 3.01 3.14 3.10 187.4 176.8 176.2

2.98 175.4 2.96 174.6 173.7 173.7

2.88 171.9 2.69 2.86 2 169.8 100 0.5 2.26

0 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Wastewater consumption in m³/t Energy consumption in MWh/t 15 2.0

14.50 1.5 11.37 10 1.852 1.683 1.0 1.405 1.335 1.320 1.314 1.284 1.262 1.263 1.243 7.78 7.72 7.60 1.232 1.161 1.156 1.145 1.153 1.145 1.134 1.125 6.53 7.00 6.70 6.60 6.46 5 1.130 5.77 0.5 5.62 5.17 5.32 5.58 5.26 5.19 5.33 5.12

0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 55 ACCIDENT STATISTICS

In 2016, the Kindberg plant worked 1,393,763 production hours. Currently, 863 workers are employed (average value in 2016).

Hours lost through Accident rate Accident absenteeism accidents 2015 2016 10

Accident rate Accidents per 100 employees 6.62 7.65 8

7.65 6 Accident frequency Accidents per 1 million hours 41.97 47.35 6.62 6.47 5.18 4 Accident severity Hours lost per accident 78.31 84.58 0.33 0.40 2 Absence from work in % Accident absenteeism 0.33 0.40 0 of working time 2015 2016 2015 2016 2015 2016 Hours lost through per year and employee 5.18 6.47 accidents

Accident frequency Accident severity 120

80 84.58 78.31

40 47.35 41.97

0 2015 2016 2015 2016

56 Trends in the company‘s accident indicators:

Accident rate per year and employee 10 15

8 12 12.75 6 11.01 9 9.54 9.69 8.83 8.79 9.11 8.68 4 8.32 8.44 8.53 8.18 6 7.46 7.76 7.65 6.85 7.29 6.24 6.62 2 3

0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Hours lost per year and employee 120 15

12 13.67 14.17 80 12.23 11.24 10.96 9 10.42 9.99 10.13 8.55 8.58 8.15 8.46 8.00 6 40 6.98 6.80 6.24 6.47 5.58 5.18 3

0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 57 ENVIRONMENTAL PROGRAM 2017/18

A Quality, Environment, Energy and Safety Program has been prepared for the FY 2017/18 (April 1, 2017 to March 31, 2018) and was approved by the Management Board on March 15, 2017.

No. Topic OBJECTIVE PROGRAM Responsible Target date INPUT MATERIALS 1 Filing Saving paper by means of electronic Electronic archiving of documents in the marketing area KVM January Archiving filing/archiving 2018 2 Cleaning agents Alternative cleaning possibilities Finding an effective and gentle method for cleaning TF January couplings 2018 3 Hydraulic oil Reduction in hydraulic oil consumption in Various measures in the maintenance area (planned -30%) TN31 January consumption the threading unit 2018 ORDER AND CLEANLINESS 4 Cleaning machine Cleanliness in the area of axle tube Procurement of a cleaning machine for axle tube production TN21 January production in order to improve the cleanliness of the workshop 2018 WASTE 5 Emulsions: Extending Extending the resting period of Regular monitoring of all emulsions at the site TQ January the resting period emulsions by 20% 2018 6 Blasting abrasives Reducing pollution by means of recycling Separate collection of blasting abrasives and return to the supplier TN21 January Recycling blasting abrasives for recycling 2018 WASTE AIR 7 shop Improvement in ambient air during Installation of a welding fumes extractor TN32 May Coupling production welding operations 2017 WATER / WASTEWATER 8 Oil separator Separation of wastewater from the Preparation of a concept for an oil separator TA2 October Washing area washing area and from the surface water 2017 canal in the area of truck garages 9 Wastewater Clear documentation regarding the quantity Preparation of an annual Wastewater Report TM January Annual report of annual wastewater and wastewater 2018 load

58 No. Topic OBJECTIVE PROGRAM Responsible Target date ENERGY 10 Refurbishment Energy saving at the tempering furnace Refurbishment of the tempering furnace by modifying the hardware controller TN22 September Tempering furnace of the OCTG Finishing Plant and by installing recuperators 2017 11 Workshop lighting Energy saving in workshop lighting Installation of new LED lamps, and installation of a BUS system for TN22 January Renewal controlling each individual lamp 2018 SAFETY 12 Thread test ‘Four-eye principle’ for failure tests Presence of two trained persons when failure tests are conducted TF September Failure test 2017 13 Activation of Improvement in personal safety Preparation of a procedural instruction for the activation of TA September electrical installations electrical installations 2017 14 Protective eyewear Preventive action against eye injuries Evaluation of the risk areas, and definition of areas where TN11 January Seamless Pipe Plant protective eyewear must be worn 2018 15 Workshop lighting Avoidance of accidents through better Renovation of light sources in the warehouses and production facilities TN11 January Seamless Pipe Plant visibility conditions 2018 16 Safety rounds Avoidance of potential accidents Inspection of the production line after a repair shift TN11 January Seamless Pipe Plant 2018 17 Rear view cameras for Enhancing the traffic safety for internal Installation of new rear view cameras for trucks used for the internal TN21 January trucks transport transport of pipes 2018 18 Inlet driver RRM Increasing occupational safety when Changing the SPS, in order to be able to perform repairs to inlet TN21 January Program extension grinding the inlet drivers driver rollers 2018 19 Test pipe storage Installation of a test pipe storage system Procurement of a test pipe storage system to substitute the test pipe TN22 January stands - simplifying the handling of test pipes and creating additional 2018 space. 20 Indexing chuck Safe removal of the indexing chuck and Production of new lifting equipment, tested by TÜV TN32 July 2017 change heads the tool change heads from the automatic lathes 21 Protective cap hall Ensuring an unobstructed view when Installation of doors with windows TN32 May 2017 windows exiting onto the through road 22 Accident frequency Reduction in accident frequency (LTIFR) Improvement in awareness by focus on safety at work TM January by 10% from the average value in with the program ‘Consciously Safe’ SO 2018 FY 2016/17

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 59 No. Topic OBJECTIVE PROGRAM Responsible Target date SAFETY 23 ‘Consciously Safe’ Identification of the origin of strengths Holding discussion workshops with approx. 40% of the employees, TM June 2017 Dialogue workshops and weaknesses in the safety culture their foremen and assistant foremen SO 24 ‘Consciously Safe’ Improvement in the safety culture and Holding a management workshop with the topic: ‘Roles and TM December Management workshop strengthening of the role model function responsibilities in occupational safety’ SO 2017 in the area of occupational safety 25 ‘Consciously Safe’ Improvement in the safety culture and Holding a workshop with all foremen and assistant foremen: TM December Workshop for foremen strengthening of the role model function ‘The value of occupational safety and the impact of role models’ SO 2017 in the area of occupational safety 26 ‘Consciously Safe’ Improvement in the safety culture Training of 12 trainers who are responsible for transferring the content TM January Train the trainer and reduction in the number of accidents of the program to employees SO 2018 that are caused by conscious and subconscious inappropriate behaviour 27 ‘Consciously Safe’ Improvement in the safety culture Training of approx. 30 safety coaches who act as disseminators for the TM January Safety coaches and reduction in the number of accidents program ‘Consciously Safe’ SO 2018 that are caused by conscious and subconscious inappropriate behaviour 28 ‘Consciously Safe’ Regular information transfer to the Holding status workshops with the Management (MB, OM) TM January Status workshops Management concerning the program (2x per year) SO 2018 ‘Consciously Safe’ 29 Crane inspection records Documentation of daily initial inspection Introduction of inspection records for the daily initial inspection of cranes TM September of cranes and hoisting equipment by the and hoisting equipment by crane operators in all operational areas, as well SO 2017 crane operator as the training of employees 30 Workplace-specific Support of operational areas by Preparation of workplace-specific instructions with the Gutwin software TM January instruction preparing workplace-specific instructions (operating instruction workplace) SO 2018 31 Preparation of instruction Implementation of legal changes relating Preparation of instruction documents in connection with new regulations TM September documents to the protection of workers of the Occupational Health and Safety Act (ASchG) SO 2017

60 No. Topic OBJECTIVE PROGRAM Responsible Target date HEALTH 32 High speed door Better room climate for employees in the Installation of a high speed door TA2 May 2017 mechanical maintenance mechanical workshop 33 Health Center 60% of employees must know the Health Marketing and awareness (offerings, events, projects, etc.) of the TM January Marketing Center Health Center CHM 2018 34 Fit on Site 70% of employees must know ‘Fit on Site’ Awareness of ‘Fit on Site’ TM January CHM 2018 35 Health Representative 20% of the trained Health Represen- Offering and organizing further training for Health Representatives TM January tatives must undergo further training in CHM 2018 company health care 36 Health rate Raising the health rate (total) to equal to, Enhancing the CHM presence and keeping it high TM January benchmark or higher than 96.7% CHM 2018 37 Age-appropriate Preparation of a concept for the imple- Intensive cooperation with the operations managers and TM January working mentation in TN32 of at least 2 measures employees in TN32 CHM 2018 resulting from the pilot project ‘Age-appropriate Working’ in TN32

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 61 GENERAL INFORMATION

If you have any questions concerning our company‘s environmental protection program, we will gladly assist you.

voestalpine Tubulars GmbH & Co KG A-8652 Kindberg, Alpinestrasse 17 Tel: 050304/23-0 Fax: 050304 / 63 -0

The Officer for Environmental and Safety Ma- nagement of voestalpine Tubulars, Mr Harald Kohlhofer, will be pleased to answer any questions on the current environmental statement and the company‘s environmental measures.

Harald Kohlhofer Tel: +43/50304/23-366 Fax: +43/50304/63-346 e-mail: [email protected] http://www.voestalpine.com/tubulars

62 VALIDATION OF THE ENVIRONMENTAL STATEMENT

The leading and authorised environmental verifier of • that the data and information included in the Environ- the environmental organisation mental Statement of the location gives a reliable, plausible and truthful picture of all activities performed TÜV SÜD Landesgesellschaft Österreich GmbH, on the site within the areas mentioned in the enviro- Campus 21, Europaring A04301, A-2345 Businesspark mental statement. Wien Süd, Austria This statement may not be construed as an EMAS regis- (Registration Number AT-V-0003) herewith confirms tration. An EMAS registration can only be effected by a that he has verified that the location mentioned in the responsible authority in accordance with regulation (EC) Environmental Statement of no. 1221/2009. This statement may not be used as an independent basis for information to the general public. voestalpine Tubulars GmbH & Co KG Alpinestrasse 17 The organisation for environmental verification TÜV 8652 Kindberg-Aumühl SÜD Landesgesellschaft Österreich GmbH has been with the Registration number AT-000208 approved by notification from the Federal Ministry of Agriculture, Forestry, Environment and Water Manage-

fulfils all requirements of Regulation (EC) No 1221/2009 ment for the 24.20 (NACE-Code). The next consolidated Environmental Statement of the European Parliament and of the Council of 25 of voestalpine Tubulars GmbH & Co KG will be presented for validation In March 2020. November 2009 on the voluntary participation by Kindberg, March 22, 2017 organisations in a Community eco-management and audit scheme (EMAS).

By signing this declaration, it is confirmed that the

• verification and validation have been conducted Wolfgang Brandl in full accordance with the requirements of Senior Environmental Verifier Regulation (EC) No 1221/2009; • that the result of the verification and validation con- firms that there is no evidence that any applicable environmental regulation has not been adhered to;

ACTING> ENVIRONMENTAL STATEMENT 2017 OF VOESTALPINE TUBULARS 63 ENVIRONMENTAL STATEMENT 2017

voestalpine Tubulars GmbH & Co KG Alpinestrasse 17 8652 Kindberg-Aumühl, Austria T. +43/50304/23-366 F. +43/50304/63-346 www.voestalpine.com/tubulars