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Health, Safety and

Environment Policy

Accident Statistics

Trends of Accident Indices

International

Accident Indices

Environmental

Balance Sheet

Material and Energy

Balance Sheet

Trends of

Input/Output Indices

voestalpine Tubulars GmbH & Co KG www.voestalpine.com/tubulars

Health, Safety and Environment Report

voestalpine Tubulars GmbH & Co KG

Alpinestraße 17

8652 Kindberg-Aumühl

The current Health, Safety and Environment Report of the company voestalpine Tubulars

GmbH & Co KG, with location in Kindberg, specifies the company’s safety, environmental

measures and statistics for the year 2016.

Management Policy

Our Management System is based on the requirements of national and international standards or

specifications such as the ISO 9001, the API Specification Q1, the ISO 14001, the ISO 50001 and the

BS OHSAS 18001, and, at the same time, adheres to all statutory and legal requirements.

The focal points of the Management System are the following criteria:

quality; environment; energy; safety and health protection.

Quality means to us:

Flawless products

Customer orientation and customer satisfaction

Fulfilment of customer requirements

Clear responsibilities and controlled processes

Flexibility and reliable delivery

Safety and health protection means to us:

Safe work places, working equipment and facilities

Protection of employees – awareness-raising activities

Minimization of accident risk - accident prevention - accident avoidance

Health promotion - tidiness & cleanliness

Environment protection means to us:

Conservation of resources - minimization of emissions

Avoidance of impact on the environment

Legal conformity – Legal compliance

Energy management means to us:

Increase of energy efficiency - reduction of energy costs

Use of renewable resources

Recycling management and sustainability

The effectiveness and the continuous improvement process of the Management System is based on

the high qualifications and a high degree of personal responsibility of each employee, risk-based

thinking concerning all relevant processes, as well as modern and state-of-the-art production

facilities.

Kindberg, March 2017

Accident Statistics 2016

Accident-Indices:

In the accident statistics, five key accident indicators are evaluated. The

following key accident indicators relate to wage-earners only.

2015 2016

Accident rate Accidents per 100 employees 6.62 7.65

Frequency of accidents Accidents per 1 million hours 41.97 47.35

Severity of accidents Lost time per accident 78.31 84.58

Lost time due to accidents Lost time in % of working time 0.33 0.40

Lost hours due to accidents per year and per employee 5.18 6.47

Accident rate – Lost time due to accidents – Lost hours due to accidents:

Frequency of accidents – Severity of accidents:

In the year 2016,

1,393,763 production hours

were performed in the

Kindberg plant.

The monthly average, of

voestalpine Tubulars employed:

863 blue collar workers

The accident rate lies at

7.65 accidents per

100 employees in 2016.

The working hours lost

due to accidents at work

amounted to 0.40% of the

total hours worked

in 2016.

The working hours lost

due to accidents at work

were on average 6.47

hours per year and

employee in 2016.

The frequency of

accidents amounted to

47.35 accidents

per 1 million working

hours in 2016.

The average working

time lost per accident

(accident severity)

amounted to

84.58 hours in 2016.

Industrial accidents 2016, according to the number of working days missed by

injured employees:

In 2016, a total of 66 accidents at work were reported, of which 23 were

negligible, 31 minor, 7 moderate and 5 were serious accidents.

Nearly half of the accidents (47%) were ‘minor accidents’ with a related

sick leave duration of between 4 to 19 days.

Causes of accidents and injuries classified under parts of the body 2016:

When analysing the causes of accidents, 19 of the reported accidents relate to

persons injured by falling and 15 accidents were caused by mashing and

crushing.

As regards injured parts of the body, the highest percentage concerned damage

to hands (33 accidents), followed by 11 accidents resulting in injuries to the legs,

and 7 accidents concerned damage to the eyes.

Negligible accidents:

up to 3 days

Minor accidents:

4 to 19 days

Moderate accidents:

20 to 45 days

Serious accidents:

more than 45 days

Negligible accidents34.8%

Minor accidents47.0%

Moderate accidents

10.6%

Serious accidents7.6%

Trends of Accident Indices:

ACCIDENT RATE

Compared to 2015, the

accident rate in 2016

increased by 15.56%.

SEVERITY OF ACCIDENTS

Compared to 2015,

the severity of accidents in

2016 increased by 8.01%.

LOST TIME DUE

TO ACCIDENTS

Compared to 2015,

the lost time due to

accidents in 2016

increased by 24.90%.

International Accident Indices:

TRIR and LTIF illustrated in international accident statistics.

TRIR

Total Recordable

Incident Rate

Ratio of accidents with

mandatory reporting

TRIR (2016) = 5.05

LTIF

Lost Time Injury

Frequency

Ratio of total hours lost

to accidents at work to

hours worked

LTIF (2016) = 0.33%

Environmental Balance Sheet 2016

The following table shows a summary of all environmental facts of voestalpine

Tubulars from the Input-Output-Analysis (Material and Energy Balance Sheet)

for the year 2016.

MMAATTEERRIIAALL aanndd EENNEERRGGYY BBAALLAANNCCEE 22001166

Input: Output:

Circulating materials

(input in t) 287,337.981 Products and packaging (t) 256,065.466

Raw materials (billets) 286,026.000 Products (steel pipes) 255,345.080

Auxiliary/Operating supplies 591.595 Product packaging 720.386

Waste, valuable substances, existing

substances (t)

59,327.454

Packaging for products 720.386 Existing substances 100.756

Valuable substances 42,990.807

Gas (input in m³) Non-hazardous waste 365.560

Industrial gas / test gas 777,074.626 Non-hazardous waste (extra projects) 14,909.360

Hazardous waste 960.971

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

Drinking/washing water from

well

53,242 Sanitary water

(indirect feed)

47,119

Industrial and cooling water 1,946,892 Process waste water (indirect feed) 118

Process waste water 1,601,075

Compressed air (input in m³) Waste air (emissions in t) 50,631.119

Compressed air 42,627,800 Gaseous emissions 50,606.641

Thereof CO2:

Remainder (CO, NOx, SO

2, C

tot, CH

4):

50,591.227

15.414

Dust 4.116

Solvent emissions 20.362

Energy procurement Energy consumption (MWhel) 336,997.492

Electricity (MWhel) 56,001.148 Energy conversion (electricity) 56,001.148

Natural gas (m³) 25,206,823.000 Heating (gas) 279,795.735

Heating oil (litres) 295.990 Heating (heating oil) 3.133

Fuel (litres) 120,860.830 Operating energy (MWhel) 1,197.476

Waste:

We distinguish the following waste types as: existing materials, non-hazardous

waste, hazardous waste and valuable substances.

Waste type Waste fractions Total 2016 in t

Existing substances Glass, metal packaging, organic

waste, cardboard packaging, light

fraction packaging

100.756

Non-hazardous

waste

Waste wood, construction waste,

mineral waste, thermal mix,

commercial waste, plastic waste,

abrasives, etc.

365.560

Non-hazardous

waste (extra projets)

Construction waste, concrete waste,

excavation waste, waste wood, etc.

14,909.360

Hazardous waste Emulsions, oil-water mixtures,

waste oils, oil sludge, operating

supplies contaminated with oil,

electronic waste, phosphating

sludge, paint and varnish residues,

mineral waste

960.971

Valuable substances Scrap, shavings, scale 42,990.807

Total 2016: 59,327.454

Wastewater:

After going through various stages of treatment, the process wastewater goes

directly into the river Mürz. There are four different wastewater flows:

Wastewater flow Volume

2016 in m3

Volume in

m3 per hour

Limit in m3

per hour

Seamless pipe plant 839,110 95.79 150

CT plant 751,806 85.82 160

Upsetting installation 3,553 0.41 8

Phosphatizing installation 6,606 0.75 2

Total wastewater 2016: 1,601,075

Wastewater treatment technologies used:

Seamless pipe plant: sedimentation and cooling

CT plant: gravel filter and cooling

Upsetting installation: pressure-release flotation

Phosphating installation: neutralization plant

Adherence to the threshold values of wastewater streams is

controlled by both the company internal chemical laboratory and

external testing institutes.

Emissions:

The majority of the emissions are caused by the combustion of natural gas used in

thermal processes, and a small percentage by use of diesel vehicles.

All industrial waste is

collected separately, stored

in accordance with existing

regulations and handed over

to duly authorized waste

disposal or recycling

companies!

Wastewater load 2016 kg per year

Filterable substances 14,547.55

COD 15,690.56

Hydrocarbons 265.95

Phosphorous 407.33

Iron 86.18

Ammonium 0.21

Aluminium 1.14

Nickel 1.12

Manganese 2.71

Material Required quantity 2016 Gaseous emissionen in t

Natural gas 25,206,823 m3 50,286.099

Diesel fuel 120,506 litres 320.542

Total 2016: 50,606.641

The use of paint containing solvents and pure solvents resulted in solvent

emissions to the amount of 20.362 tons in 2016.

Energy:

Energy consumption consists of the use of natural gas, electric energy and fuel.

Energy supply Required quantity 2016 Energy consumption in MWh

Electricity 56,001.148 MWhel 56,001.148

Natural gas 25,206,823 m3 279,795.735

Heating oil 295.99 litres 3.133

Fuel 120,860.83 litres 1,197.476

Total 2016: 336,997.492

Material and Energy Balance of the production of 1 ton of steel pipe (2016):

Erhitzen - Walzen - Adjustieren - Stauchen - Wärmebehandeln - Prüfen -

Gewindeschneiden -

Production: Heating – Rolling – Straightening – Finishing

Upsetting – Heat Treatment – Testing – Threading

Coupling production – Conserving

Energy supply: - Electricity: 0.219 MWh - Natural gas: 98.717 m3 - Heating oil: 0.001 l - Fuel: 0.473 l Water: 7.834 m3

- Drinking water from well: 0.209 m3 - Industrial and cooling water: 7.625 m3

Compressed air:

166.942 m3

Billets: 1,120.155 kg

Operating supplies: 2.317 kg - Oil - Lubrications - Paint and lacquer - Solvents - Corrosives - Metal working agents - Phosphate agents - Cleaning agents

Energy consumption 1.320 MWh

Wastewater: 6.455 m3 - Indirect sanitary water: 0.185 m3 - Direct waste water: 6.270 m3

Recyclable: 168.364 kg

Non-hazardous waste (extra projects): 53.389 kg

Hazardous waste: 3.763 kg

Packaging: 2.821 kg

Steel pipe: 1,000 kg

Emissions: 198.285 kg - CO2: 198.129 kg - CO: 0.0049 kg - NOx : 0.0405 kg - SO2 : 0.0020 kg - C

ges : 0.0128 kg - Dust: 0.016 kg - Solvent emissions: 0.080 kg

Recyclable waste: 0.395 kg

- Electricity: 0.219 MWh - Natural gas: 1.096 MWh - Fuel: 0.005 MWh

Non-hazardous waste: 1.432 kg

Of 50,606.641 tons of

gaseous emissions, the

major part (i.e. 99.97%)

comprises 50,591.227 tons of

CO2-emissions.

Trends of Input Indices from 1998 to 2016:

The specific input and output values relate to the corresponding absolute values in proportion to the

volume of production.

Trends of Output Indices from 1998 to 2016:

Imprint

Content, design and layout:

Management Systems Department

Contact:

Harald Kohlhofer

T.+ 050304 23 366

F.+ 050304 63 346

harald.kohlhofer@vatubulars.com

voestalpine Tubulars GmbH & Co KG

Alpinestraße 17

8652 Kindberg-Aumühl

T.+43/50304/23-0

F.+43/50304/63-0

www.voestalpine.com/tubulars