HIGHLIGHTS 2 THE TECHINT GROUP IN BRIEF 4 TECHINT GROUP COMPANIES 14 TECHINT GROUP COMPANIES IN THE WORLD 78

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2 Six main companies with an international reach, all global or regional leaders in their fields, with deep roots in the countries where they are established, each with its own objectives and strategies, but all partaking an original philosophy of long term presence, commitment to local development, and a passion for quality and technology: this is the Techint Group, which in 2013 had total revenues of USD 25.4 billion and more than 59 thousand permanent employees worldwide. The companies are: Tenaris, a leading supplier of steel tubes and related services for the world s energy industry and certain other industrial applications, with an integrated worldwide network of steel pipe manufacturing, research, finishing and service facilities, with industrial operations in North and South America, Europe, Asia, the Middle East and Africa and a direct presence in most major oil and gas markets; Ternium, an integrated supplier of flat and long steel products and a leading steel producer in Latin America, with steel manufacturing and processing facilities located in Mexico, Argentina, Brazil (through a managing stake in Usiminas), Colombia, the southern United States and Guatemala, and with a network of service and distribution centers in Latin America serving its core markets; Techint Engineering & Construction, a group of companies providing engineering, procurement, construction, operation and management services for projects of great importance in worldwide locations, in such market segments as oil & gas, energy, industrial plants, oil refineries and petrochemical plants, mining, infrastructure and architecture civil works; Tenova, a worldwide supplier of advanced technologies, products and engineering services for the metals and mining industries providing innovative, integrated solutions for complete process areas through companies located in 5 continents; Tecpetrol, active in oil and gas exploration and production in several countries of the Americas, which also promotes, develops, operates and manages natural gas transportation networks in the region; Humanitas, holder of a number of research-committed health care institutions of high complexity in Italy, managed through a patient oriented approach relying on state-of-the-art management models and integrated information technology systems. Techint Group companies aim for competitiveness in international markets, invest in human resources and scientific research, promote health and safety among employees, are careful of the impact of operations on the environment, establish transparent and constructive relations with local communities and foster long-term relationships with clients and suppliers. In respect of its founding philosophy, the Techint Group does not engage in purely financial activities. HIGHLIGHTS 2 THE TECHINT GROUP IN BRIEF 4 Origins and Expansion 4 Values 9 Activities 10 TECHINT GROUP COMPANIES 14 Tenaris 16 Ternium 26 Techint Engineering & Construction 34 Tenova 48 Tecpetrol 66 Humanitas 72 TECHINT GROUP COMPANIES IN THE WORLD 78 Addresses 80

3 The Techint Group 2013 This publication serves the purpose of presenting the Techint Group and its main activities in the year It is based on information available as of February 28, 2014

4 Highlights TECHINT GROUP CONSOLIDATED COMPANIES HIGHLIGHTS USD Million Revenues Capital Expenditures * 17, ,092 1,544 24,105 1,918 25,477 2,282 25,378 2,085 Total Assets 26,539 28,039 31,364 33,755 33,226 Permanent Employees 48,895 54,205 57,359 59,196 59,429 * Increase before depreciation of tangible and intangible assets gross of divestitures. REVENUES PERMANENT EMPLOYEES USD MILLION 28,000 HEADCOUNT 60,000 24,000 50,000 20,000 40,000 16,000 12,000 8,000 30,000 20,000 4,000 10, Tenaris SHIPMENTS OF TUBES SALES BY REGION IN 2013 USD million SEAMLESS WELDED TOTAL 10,597 THOUSANDS OF METRIC TONS 5,000 4,000 3,000 FAR EAST & OCEANIA 520 EUROPE 958 MIDDLE EAST & AFRICA 2,120 2,000 1, NORTH AMERICA 4,412 SOUTH AMERICA 2,587 Ternium SHIPMENTS OF STEEL PRODUCTS* SHIPMENTS BY REGION IN 2013* TOTAL 8,988 THOUSANDS OF METRIC TONS THOUSANDS OF METRIC TONS 10,000 8,000 6,000 OTHER MARKETS 1,370 MEXICO 4,985 4,000 2, SOUTHERN REGION ** 2,633 *Shipments of pig iron not included. **The Southern Region encompasses Argentina, Bolivia, Chile, Paraguay and Uruguay. 2

5 COMPANIES PERFORMANCE USD MILLION WORK PERFORMED BACKLOG OF ORDERS* 5,000 4,000 3,000 BACKLOG OF ORDERS BY REGION AS OF 12/31/13 USD million TOTAL 2,374 EUROPE, MIDDLE & FAR EAST, AFRICA 529 ARGENTINA 612 Techint Engineering & Construction 2,000 1, OTHER AMERICA 284 MEXICO 267 BRAZIL 682 *At end of period. TENOVA PERFORMANCE WORK PERFORMED BACKLOG OF ORDERS* BACKLOG OF ORDERS BY REGION AS OF 12/31/13 USD million Tenova USD MILLION 3,000 2,500 TOTAL 2,065 NORTH & SOUTH AMERICA 724 EUROPE & CIS 280 2,000 1,500 1, AFRICA 252 MIDDLE, FAR EAST & OCEANIA 526 CHINA 282 *At end of period. PRODUCTION* RESERVES PROVED* Tecpetrol E&P OPERATIONS SERVICE CONTRACTS E&P OPERATIONS SERVICE CONTRACTS MILLION BBL OF OIL EQUIVALENT MILLION BBL OF OIL EQUIVALENT * Own working interest. HUMANITAS GROUP: TOTAL ADMISSIONS 0 06/30/09 6/30/10 6/30/11 6/30/12 6/30/13 * Own working interest. HUMANITAS GROUP: OPERATIVE BEDS* Humanitas 120, ,000 1,400 1,200 80,000 60,000 40,000 20, , Highlights *Inpatient, at end of period. 3

6 Origins and Expansion Agostino Rocca ( ), founder of the Techint Group. Compagnia Tecnica Internazionale - soon named TECHINT after the original telex code - was founded as an international corporation in The founder, Agostino Rocca, was an innovative engineer, manager and entrepreneur, and a key force behind the development of the Italian steel industry in the 1930s. The company began providing engineering services to a growing number of clients in Latin America -to where Agostino Rocca had traveled after World War II- and Europe. Construction activities soon followed: the first major Techint engineering and construction (E&C) project was a network of large diameter pipelines in Argentina and Brazil. After building the southern gas pipeline in Argentina (inaugurated in 1949) and completing other pipeline projects, the E&C activities of the company extended during the 1950s to the field of power infrastructure. In those early years, the company started the production of steel structures and heavy mechanical parts and equipment near Buenos Aires in order to support the industrial ventures which soon followed. Fueled by Mr. Rocca s vision, the company expanded and diversified its original activities by building and then operating two seamless steel tube plants, one in Veracruz, Mexico and the other in Campana, Argentina. Both plants began production in In the late 1960s, a flat steel cold-rolling facility was built in Ensenada, Argentina, which was meant to be the first step of a planned fully integrated operation. Steel manufacturing was now the main industrial activity of the Techint Group. In the 1960s and 1970s, the E&C activities were developed further and farther, establishing Techint as one of the world s major pipeline builders, and a supplier of turnkey plants for productions ranging from steel to petrochemicals. In the 1980s important projects were undertaken in Argentina, Brazil, Ecuador and Mexico, and the company diversified into new fields of activity, building the first nuclear facilities and offshore platforms. In 1980 Techint Engineering & Construction was among the first companies to adopt computer aided design (CAD) systems. During the 1990s, the company made key contributions to energy integration in the Southern Cone region, building the pipelines linking Argentina and Chile, Bolivia and Brazil, and Brazil and Argentina. In the early 2000s Techint Engineering & Construction undertook simultaneously two of the most challenging pipeline projects ever: the OCP crude oil pipeline in Ecuador and the Camisea gas and LNG pipelines project in Peru. The company also developed projects in Egypt and Nigeria, where it carried out electromechanical assembly of power generation facilities and natural gas liquefaction plants. Currently, Techint Engineering & Construction is engaged in large projects in Argentina, Brazil, Chile, Ecuador, Egypt, France, Italy, Mexico, Peru, United Arab Emirates and other countries (see detailed references in the Techint Group Companies section of this publication). In over sixty five years of activity, Techint Engineering & Construction has 4

7 successfully completed more than 3,500 projects in more than 45 countries, and remains engaged in large industrial and infrastructure projects worldwide. The Techint Group s steel pipes business also continued to grow. In the mid-1980s it undertook a major, export-oriented expansion of the Campana mill and acquired Argentine welded pipe maker Siat. In the 1990s it also acquired control of the Veracruz mill in Mexico and the Dalmine seamless pipe mill in Italy. Steel pipe manufacturing facilities were also, in time, acquired in Brazil, Venezuela, Japan, Canada and Romania. From left to right: Gianfelice, Agostino ( ), Roberto ( ) and Paolo Rocca. Tenaris, the company under which all the manufacturing and service activities in the steel pipe business are grouped today, went public at the end of 2002 quoting in the Buenos Aires, Mexico City and Milan stock exchanges and its American Depositary Securities listed on the New York Stock Exchange. With the acquisition of Maverick Tube Corp. in 2006 Tenaris became a leading North American producer of welded oil country tubular goods (OCTG), line pipe and coiled tubing for use in oil and natural gas wells. It also acquired a presence in Colombia through TuboCaribe. Aiming for leadership in the premium market, Tenaris in 2007 acquired Hydril, a renowned producer of premium OCTG connections in the USA with a solid international presence. Two years later Tenaris acquired control of Seamless Pipe Indonesia Java (SPIJ), an OCTG processing business with heat treatment and premium connection threading facilities; shortly thereafter, Tenaris completed its new premium threading facility in Saudi Arabia in order to supply customer Saudi Aramco with TenarisHydril premium connections. In November 2010 Tenaris rolled out the first pipe at its new rolling mill in Veracruz, a major investment meant to complement the integrated global manufacturing network and accompany the development of the oil and gas industry in North America. With a similar aim, in September, 2013 Tenaris announced that it broke ground on its first US seamless pipe mill in Bay City, Texas. The new facility will have an annual production capacity of 600,000 tons of high quality seamless pipe and is expected to begin operations in A major expansion project of the TuboCaribe plant is also under way, with completion scheduled by When finished, the plant will reach an output of 300,000 tons of welded and seamless pipes. Tenaris is also increasing the production of sucker rods, with an expansion of the mill in Veracruz, Mexico and the construction of a new mill in Conroe, USA. THE TECHINT GROUP IN BRIEF 5

8 Today, Tenaris is a leading supplier of tubes and related services for the world s energy industry and certain other industrial applications. It has an integrated worldwide network of steel pipe manufacturing, finishing, service and research facilities with industrial operations in North and South America, Europe, Asia, the Middle East and Africa and a direct presence in most major oil and gas markets. Tenaris continues to strengthen its competitive position investing heavily in research and the continuous improvement of its talented workforce. Cold rolling and downstream processing of flat steel in Argentina continued to grow through the 1980s. In 1992, the Group acquired from the state a majority share of Somisa, the largest integrated flat steel plant in Argentina, and brought it up rapidly to international production standards through a major investment program. Steel coating and processing capacities were also expanded in the 1990s through investments and acquisitions. All Argentine flat steel facilities were then integrated in Siderar. In 1997, the Group participated in a consortium that acquired a controlling share of Sidor, the largest steel company in Venezuela. In 2005, Ternium was born, with the integration of Siderar, Sidor and Hylsa: acquired in August of that year, Hylsa was the largest steel manufacturer in Mexico, and the one with the highest level of vertical integration, from the extraction and processing of iron ore to the manufacturing of high value added steel products. In February 2006, Ternium closed its IPO on the New York Stock Exchange. In 2007, Ternium took control over Grupo Imsa, a company with a strong presence in Mexico and processing facilities in Guatemala and the United States. In 2008 the Venezuelan government nationalized Sidor. In 2010, Ternium completed the acquisition of Colombia-based Ferrasa, a leading long and flat steel products processor and distributor. That same year, Ternium and Nippon Steel signed an agreement to form a company in Mexico for the manufacturing and sale of hot-dip galvanized and galvannealed steel sheets to serve the Mexican automobile market. In January 2012, Ternium, together with its subsidiary Siderar and Tenaris company Confab, completed the acquisition of a stake in Usiminas joining its control group. Usiminas is the largest flat steel producer in Brazil, with 9.5 million tons of crude steel capacity. The company has strategically located facilities near the main consumers of steel in Brazil and iron ore mines in the Serra Azul region. In September of 2013 Ternium inaugurated an industrial center in Pesquería, Mexico, realizing the project developed by Ternium and Tenigal, the joint venture between Ternium and Nippon Steel & Sumitomo Metal Corporation. Through its two main production lines, a cold-rolling mill and Tenigal s hot-dipped galvanizing mill, four cold processes and high-tech services for its operation, this center will produce high-end steel mainly for the automotive industry, with annual processing capacity of 1.5 million tons of cold-rolled steel and 400,000 tons of galvanized steel. 6

9 With an annual production capacity of approximately 10.9 million tons of finished steel products and 4.4 million tons of iron ore Ternium is now one of the most significant and dynamic players in the Americas. The company continues to invest in its steel mills and in mining in order to increase production, improve quality and draw synergies from process integration and product specialization. The Techint Group experience and skills in plant making have, since the beginning, been accompanied by the in-house manufacture of heavy equipment and industrial machinery. Starting in the 1980s, a series of acquisitions and expansions in Italy had multiplied the portfolio of products and leading technological solutions, particularly for the metals and raw materials industries. Important international acquisitions of leading companies took place in the mid 2000s under the Tenova brand, aimed at the dual purpose of completing the offer in terms of technologies and products and broadening and consolidating the geographical penetration. Today Tenova operates in 26 countries across five continents and its product lines include innovative technologies for the metals and the mining & minerals industries. Activities in the metals industries span from the upstream processes involving raw materials treatment and the steelmaking processes, up to the downstream phase including both thermal and rolling and finishing processes, covering the key segments of the industry. In the mining & minerals industries, Tenova s engineering and manufacturing skills have long been applied to bulk handling and advanced mining technologies. In 2012, through the acquisition of a leading global mining engineering house and equipment supplier, Tenova has strengthened its offering, presence and operations, by providing EPCM services and equipment covering most of the mining and minerals processing and extractive metallurgy value chain. During the 1990s the Techint Group invested in oil and gas blocks in Argentina through exploration and production company Tecpetrol. Tecpetrol has acquired operations in Venezuela, Bolivia, Ecuador, Mexico, Peru, Colombia and the United States. In 2013 the concession of an important operated block in Argentina was renewed until the year Through Tecpetrol, the Group also holds operating interests in a number of gas transportation businesses, such as Transportadora de Gas del Norte (TGN), Transportadora de Gas del Mercosur (TGM) and Litoral Gas in Argentina and Transportadora de gas del Perú (TgP) in Peru. The latter holds the concession of the two Camisea trans-andean pipelines, one for gas and one for liquids, whose construction has been one of the most challenging projects undertaken by Techint E&C. These Peruvian assets are in the process of being divested. Even so, Tecpetrol continues to pursue the development of energy infrastructure projects, a synergic field of activity involving all the major strengths of the Group. In Italy, the Techint Group entered the health services sector in the mid-1990s by building and managing Istituto Clinico Humanitas, a state-of-the-art hospital THE TECHINT GROUP IN BRIEF 7

10 and medical research institute near Milan. Specialized company Humanitas has subsequently acquired controlling interests in other important private hospitals in Bergamo, Turin, Catania and Castellanza, where the successful technology-based and patient oriented management model originally adopted in Istituto Clinico has been replicated. Humanitas continues to invest in new health and science facilities, consolidating its position as a foremost private health concern in Italy. For more than 10 years Istituto Clinico Humanitas has been a teaching center for medicine, biotechnologies and nursing degrees thanks to an affiliation with the University of Milan. Its Research Center has become a world-famous center of excellence for immune system related diseases, from cancer to rheumatoid arthritis. Since 2010 Humanitas also hosts the international track of the University of Milan School of Medicine. Today, the Techint Group comprises six main companies operating worldwide through numerous subsidiaries, supported by a workforce of experienced professionals and skilled workers numbering 59,400 permanent employees. The global annual turnover of companies of the Techint Group, public and non-public, was USD 25.4 billion in The magnitude of operations of the main companies of the Techint Group may be gleaned from the following table: Techint Group Companies - significant data Tenaris: total (seamless and welded) tubes shipments in 2013 (million tons) 3.7 Ternium: shipments of steel products* in 2013 (million tons) 9.0 Techint Engineering & Construction: backlog of work as of December 31, 2013 (billions of USD) 2.4 Tenova: backlog of work as of December 31, 2013 (billions of USD) 2.1 Tecpetrol: operated and service contracts working interest in oil and gas production in 2013** (million bbl of oil equivalent) 30 Tecpetrol: operated oil and gas pipelines at end-2013 (thousand kilometers) 12 Humanitas hospitals admissions in ,200 * Excluding pig iron ** Includes production from Libertador field (Ecuador) 8

11 Values Techint Group companies share an original philosophy of long term presence, commitment to local development, and a passion for quality and technology. The success and growth of companies also reflect a management approach based on continued investment in human resources and the development of individuals competences and responsibilities in a safe working environment where teamwork is as essential as a single s drive and initiative. Techint Group companies are multilocal industrial enterprises deeply rooted in the countries where they operate, and are established with such objective in mind. Thus, they possess a thorough understanding of local cultures, and are able to recognize, and draw fully from local strengths and skills. Companies are committed to economic progress and contribute to local development and growth through their output, investment in human resources and investments aimed at improving the welfare of the communities in which they operate. They respect, care for, and contribute to the quality of the surrounding environment. The management of Techint Group companies is renowned for its professionalism and for the strict financial and operational control it exercises over all ventures. Thus, Techint Group companies are ideal partners for business initiatives, and have often set up joint ventures with both local and foreign partners wherever they have an established presence. Techint Group companies aim for competitiveness in international markets, relying on quality, technology and an understanding of their clients needs. Techint Group companies have always prided themselves on their ability to manage complex projects and integrate up-to-date technology in all fields of operation, beginning with the companies own industrial and services facilities and the information and communication technology links that allow them to operate worldwide. A full understanding and evaluation of clients needs is a main principle of the Group s philosophy. Industrial, engineering and services companies strive to develop long-term relationships with their clients. Respecting the philosophy of its founder, it is not the policy of the Techint Group to engage in purely financial activities. Safe Hour time in Ternium s plants. THE TECHINT GROUP IN BRIEF 9

12 Activities Inauguration of the Roberto Rocca Technical School in Campana, Argentina. During more than 65 years of activity, the companies of the Techint Group have evolved, building upon the vast amount of experience gained in such areas as steelmaking; building of complex infrastructures; design and construction of industrial plants and machinery; oil and gas exploration and production; and selected public services. All along, companies have maintained a deep commitment to efficiency, quality, integrity and respect of the value of individuals, promoting health and safety among employees, being careful of the impact of operations on the environment, establishing transparent and constructive relations with local communities, establishing long-term relationships with customers and suppliers. Today, the companies of the Techint Group are active in a small number of clearly circumscribed industries, where they have global or regional prominence: Tenaris is a leading supplier of steel tubes and related services for the world s energy industry and certain other industrial applications; Ternium is a leading supplier of flat and long steel products in Latin America, with steel manufacturing and processing facilities, and service and distribution centers in the Americas; Techint Engineering & Construction carries out, from design to execution, projects of high complexity in the oil & gas; energy; industrial plants; oil refineries and petrochemical plants; mining; infrastructures and architecture civil works market segments; Tenova is a worldwide supplier of advanced technologies, products and engineering services for the metals and mining industries providing innovative, integrated solutions for complete process areas; 10

13 Tecpetrol is involved in oil and gas exploration and development, as well as in gas and natural gas liquids transportation and distribution projects, in the Americas; Humanitas promotes, implements and manages health care initiatives, research and teaching. In addition, Techint Group company Exiros provides a wide range of industrial procurement services to many of the above companies, negotiating more than 7.5 billion dollars per year in purchases of raw materials, industrial goods and services for its customers. Tenaris Tenaris offers advanced product technology and integrated supply chain management services on a global scale to customers such as the world s major oil and gas companies, as well as engineering and industrial companies. Tenaris has manufacturing facilities in Argentina, Brazil, Canada, Colombia, Indonesia, Italy, Japan, Mexico, Romania and the United States, a proprietary global service along with a worldwide distribution network. Tenaris s annual production capacity of seamless pipes is 3.7 million tons. The company also has annual capacity of 2.6 million tons of welded pipes, and employs 26,800 people worldwide. Tenaris is the world leader in premium connections and is at the forefront in the development of the tubular technologies required not only to operate in the most demanding oil and gas fields, but also in high performance mechanical and structural applications. Tenaris is a public company, incorporated in Luxembourg, with its shares listed in Milan, Buenos Aires and Mexico and its American Depositary Securities listed on the New York Stock Exchange; it adheres to international standards of corporate governance, financial transparency and information disclosure. Ternium Ternium is a leading steel producer in Latin America. It manufactures and processes a broad range of value-added steel products - including galvanized and electro-galvanized sheets, pre-painted sheets, tinplate, welded pipes, and hot-rolled and cold-rolled steel, as well as slit and cut-to-length offerings through its service centers - for customers operating in the construction, home appliances, capital goods, container, food, energy and automotive industries. Ternium also produces long steel products, such as bars and wire rod, and metal building components. With an annual production capacity of 10.9 million tons of finished steel products and 16,800 employees, Ternium has production facilities located in Mexico, Argentina, Brazil (through a managing stake in Usiminas), Colombia, the southern United States, and Guatemala, as well as a network of service and distribution centers in Latin America. Ternium shares the Techint Group s high standards of quality, efficiency and industrial technology. Ternium is a public company with its shares listed on the New York Stock Exchange (NYSE: TX). THE TECHINT GROUP IN BRIEF 11

14 Techint Engineering & Construction Techint Engineering & Construction provides engineering, procurement, construction, operation and management services for projects of great importance in worldwide locations. The company s multi-local presence allows it to have deep knowledge of the technical standards, laws and regulations, taxes, financial entities, labor unions and subcontractors in the regions where it operates. Thanks to its large experience in the market, Techint Engineering & Construction can develop high complexity projects, from design to execution, taking care of the environment and the welfare of communities. With over sixty five years of experience and employing 22,000 people worldwide, the company has completed more than 3,500 projects in compliance with ISO/BS/OHSAS international standards in America, Europe, Middle East and Africa. Currently, the company delivers services in the following market segments: Oil & Gas, Energy, Industrial Plants, Oil Refineries and Petrochemical Plants, Mining, Infrastructure and Architecture Civil Works. Tenova Tenova is a major international supplier of advanced technological solutions for the metals and mining & minerals industries worldwide, targeting the need for quality, efficiency and environmental safeguard of its clients. Its product portfolio embraces a range of technologies and renowned brands with numerous references in most countries (for details, see the Techint Group Companies section of this publication). Tenova s product lines of innovative equipment and services for the metals industry include steel shop equipment, industrial furnaces, rolling & finishing technologies and fully automated roll shops. Tenova also operates in the mining industry, providing engineering and EPCM services, equipment and technologies covering mining, bulk handling, minerals processing and extractive metallurgy. The company has carried out an international expansion strategy to complete its offering in terms of technologies, services and products, and to widen and strengthen its geographical presence. Today Tenova s network of companies operates in 26 countries over 5 continents as an integrated, flexible, customer-oriented organization with solid local roots. Tecpetrol The Techint Group has a long-standing record of involvement in America s potential for energy development and integration. With privately held Tecpetrol, the Techint Group is active in the exploration and production of oil and gas fields in Argentina, Bolivia, Colombia, Ecuador, Mexico, Peru, Venezuela and the United States. Tecpetrol also participates in the operation of gas transportation companies, among them Transportadora de Gas del Norte (TGN), Transportadora de Gas del Mercosur (TGM), Litoral Gas in Argentina, and Transportadora de gas del Perú (TgP), the Camisea pipelines company in Peru, as well as in other energy-related developments. The company also offers maintenance services to Pemex in Mexico, in the Sistema 3 project. Synergies are achieved with Techint Engineering & Construction, a top-ranking builder of oil and gas pipelines and facilities worldwide. 12

15 Humanitas In Italy, the Techint Group is active in health care through the Istituto Clinico Humanitas and the Humanitas Group. Humanitas promotes, implements and manages health care initiatives, research and teaching. The Humanitas Group includes the well established, research- and teaching-focused Istituto Clinico Humanitas hospital near Milan, built by Techint, and prestigious private accredited hospitals in Bergamo, Turin, Catania and Castellanza (Varese). The delivery of health care in these structures is based on Humanitas economically successful, patient oriented management model, supported by state-of-the-art technologies. Exiros Exiros is a global company that offers integral procurement solutions, from suppliers scouting activities to inventory management and trading of raw materials, production materials and equipment. Exiros centralizes the purchasing operations of Tenaris and Ternium, the steel business companies of the Techint Group, and a portion of Techint Engineering & Construction, consolidating over 8 billion dollars in purchases of a wide range of categories, including the afore mentioned in trading, plus supplies, transport and services. The company employs 500 people in Argentina, Brazil, Canada, China, Colombia, Guatemala, Italy, Indonesia, Mexico, Nigeria, Romania, The Netherlands, Uruguay, and the United States. Fully owned by Tenaris and Ternium, Exiros aims to increase the efficiency of its shareholders supply chains, leveraging on the support of more than 12,000 active suppliers and performing more than 630,000 transactions every year. THE TECHINT GROUP IN BRIEF 13

16 Techint Group Companies Tenaris Ternium Techint engineering & construction 14

17 Tenova Tecpetrol Humanitas techint group companies 15

18 Tenaris techint group companies Our mission is to deliver value to our customers through product development, manufacturing excellence, and supply chain management. We seek to minimize risk for our customers and help them reduce cost, increase flexibility and improve time-to-market. Tenaris employees around the world are committed to continuous improvement by sharing knowledge across a single global organization. 16

19 Tenaris 17

20 Tenaris 3 In the previous pages: TenarisHydril premium connections at a well in the Eagle Ford Shale operated by a US independent, where Tenaris provided field service. Tenaris is a leading supplier of steel tubes and related services for the world s energy industry and certain other industrial applications. With a global network of manufacturing facilities, service yards, R&D centers and commercial offices, Tenaris in 2013 produced 2.6 million tons of seamless pipes and 1.0 million tons of welded pipes including Tubes and Projects. Tenaris is a public company, incorporated in Luxembourg, with its shares listed in Milan, Buenos Aires and Mexico and its American Depositary Securities listed on the New York Stock Exchange; it adheres to international standards of corporate governance, financial transparency and information disclosure. The company employs around 26,800 people worldwide. Tenaris s customers include most of the world s leading oil and gas companies as well as engineering companies engaged in constructing oil & gas gathering, transportation and processing facilities. Tenaris serves customers through four global business units focused on specific market segments, and local business units which are located in the countries hosting its main production facilities. In 2013 Tenaris had annual net sales of USD 10.6 billion. Global Lines of Business techint group companies Oil Country Tubular Goods (OCTG) and Premium Connections Tenaris supplies a full range of high quality casing and tubing, drill pipe, premium connections, pipe accessories, sucker rods and coiled tubing for use in all types of oil and gas drilling and well completion activities. Using a unique network of manufacturing, service, distribution and R&D facilities, Tenaris focuses on reducing time and costs for customers through integrated supply chain management and developing industry leading products and technical services. Tenaris s service offer covers the entire project lifespan, from the selection of materials to pipe handling and on-site technical assistance during running. Through TenarisHydril, Tenaris is able to offer customers worldwide a full range of integral and coupled premium connection products for the most demanding E&P environments. The combined R&D and industrial know-how make a substantial contribution to expanding the frontiers of oil and gas exploration and production. A free ipad application - Why Pipe Matters - shows that high quality and reliable steel pipes are essential to overcome the challenges of today s oil 18

21 and gas industry. The application explains how steel pipes are used in each stage of the oil and gas industry and summarizes the extreme conditions in which companies operate around the world. In addition, it presents a brief history of the industry, highlights the importance of services and underscores how steel pipes help reduce the environmental footprint of a project. Other free apps by Tenaris include Tenaris Library that compiles up-to-date information on OCTG and pipeline products supplied by the company, and the Tenaris Hydrill Application Guide that details the features of premium connections. Pipeline Services Tenaris manufactures a complete range of seamless and welded line pipe and coiled line pipe products for use in onshore and offshore pipelines, with onsite ready for installation delivery. Tenaris focuses on providing the risers, flowlines and subsea tubular components for the deepwater and ultra deepwater markets. Services provided include material selection, double jointing, internal and external coating, internal blasting, anode pad installation and other detailed operative services. Tenaris s range of products also includes pipes for complex offshore structures like platforms and rigs. Tenaris R&D Center in Veracruz, Mexico; the R&D network is fundamental in Tenaris s approach to serving customers. Tenaris 19

22 Process and Power Plant Services Tenaris provides comprehensive material planning, supply chain management services and on-time delivery of quality products to enable customers to meet the demanding needs of major refinery, petrochemical and power plant contracts. Products include a wide range of seamless and welded line pipe, fittings and flanges in most carbon, low alloy and high alloy steel grades as well as special grades, and cold drawn pipes for boilers and heat exchangers. Industrial and Automotive Services Tenaris provides a wide variety of mechanical, structural and cold-drawn seamless pipe products for industrial applications with a focus on segments such as automotive components, hydraulic cylinders, construction machinery, gas cylinders and architectural structures. Services provided include just-in-time delivery, stocking and consignment programs and e-commerce facilities. Local Business Units and Facilities In countries where Tenaris has its principal pipe manufacturing centers, local business units cater to the local market. Services offered take advantage of the local manufacturing presence and the distinctive heritage of the mills in the communities where they operate. techint group companies North America Tenaris has a fully integrated seamless pipe manufacturing facility, a pipe fittings facility and a sucker rods mill in Mexico; three welded pipe manufacturing facilities, two coiled tubing facilities and a couplings manufacturing facility in the United States; and a seamless pipe rolling mill and a welded pipe manufacturing facility in Canada. Premium connection threading facilities are also operating in the region. A new sucker rods mill is under construction in the USA. In Mexico, Tamsa - Tenaris s fully integrated seamless pipe manufacturing facility - is located near the port of Veracruz on the Gulf of Mexico, near the major exploration and drilling operations of Mexican state oil company Petróleos Mexicanos (Pemex). The facility includes a new cutting-edge technology rolling mill, which began operation in 2010, and a sucker rod plant which has recently been expanded. With its R&D center, automotive center, TenarisUniversity and environmental certifications, Tamsa has become the industrial center of Tenaris in Mexico. 20

23 In the United States, Tenaris has three facilities producing a complete size range of welded Oil Country Tubular Goods (octg), including technologically advanced products such as premium couplings, coiled tubing and coiled subsea umbilicals. Main plants are located in the Houston area, in Arkansas and in Tennessee. A new sucker rod mill is under construction in Conroe, Texas. Tenaris is also building a greenfield seamless steel pipe plant in Bay City, Texas, which is expected to be completed by In Canada, Tenaris has two production facilities: a seamless steel pipe manufacturing facility located in Sault Ste. Marie, in the province of Ontario, and a welded steel pipe manufacturing facility based in Calgary, Alberta. South America Tenaris has a fully integrated seamless pipe facility in Argentina. In addition, welded pipe manufacturing facilities are located in Argentina, Brazil, Colombia and Ecuador. The main manufacturing facility that Tenaris has in South America is a fully integrated plant with a state-of-the-art seamless pipe mill located on the banks of the Paraná River near the town of Campana, approximately 80 kilometers from the city of Buenos Aires, Argentina. Stock of OCTG at Hammerfest, Norway; special oilfield products are required in sub-zero temperatures as metals without adequate impact toughness can fail due to brittleness. Tenaris 21

24 TenarisHydril Dopeless technology is a dry, dope-free coating that provides operational, well-productivity and HSE benefits. In Argentina Tenaris also has two welded pipe plants, one located at Villa Constitución in the province of Santa Fe which produces small diameter welded pipes, and another located in Valentín Alsina, just south of the city of Buenos Aires, which produces welded pipes with a diameter range of 4½ to 80 inches that are mainly used in the construction of pipelines. In addition, Tenaris produces tubular accessories such as sucker rods and pipe protectors in Villa Mercedes, in the province of San Luis. Tenaris also has a modern gas turbine power generation plant, located at San Nicolás, approximately 150 kilometers from Campana. techint group companies At Pindamonhangaba, 160 kilometers from the city of São Paulo, Brazil, Tenaris processes steel plates and coils to produce welded steel pipes with an outside diameter range of 4½ to 100 inches for various applications, including oil, petrochemical and gas applications. The facility also supplies external and internal anticorrosion pipe coating. With an investment of over USD 38 million the construction of the new Tenaris s Research and Development Center in the Rio Technology Park at Ilha do Fundão, Rio de Janeiro, Brazil, is nearing completion. In Cartagena de Indias, Colombia, Tenaris has a steel pipe manufacturing facility which produces mainly welded OCTG and line pipe products for the local oil & gas industry and for export, as well as welded steel pipes 22

25 for electric conduits. The plant is undergoing an expansion that will allow it to reach an output of 300 thousand tons per year of seamless and welded pipes. To strengthen its presence in South America, Tenaris completed in 2013 the construction of a new threading facility for OCTG products in the town of Machachi, Ecuador. The facility will finish casing and tubing in a wide range of sizes. Europe In Europe, Tenaris has seamless pipe manufacturing facilities in Italy and Romania and a premium connection threading facility in the UK. The principal manufacturing facility in Europe is an integrated plant with over one hundred years of history, located in the town of Dalmine in the industrial area of Bergamo, about 40 kilometers from Milan. It also boasts a Research and Development Center specialized in hot rolling technologies for seamless tubes and the study of new products for the thermal and mechanical sectors. In Romania, Tenaris has production facilities located in Zalau - a seamless pipe mill with a 225,000 tons/year capacity - and in Calarasi - a steel shop with an annual capacity of 470,000 tons, as well as a recently acquired sucker rods plant in Campina and a service center in Ploiesti. Far East and Oceania Tenaris s manufacturing facility in Asia, operated by NKKTubes, is a seamless steel pipe plant located in Kawasaki, Japan, in the Keihin steel complex owned by JFE. The facility produces seamless pipes with an outside diameter range of 1 to 17 inches. Steel bars and other essential inputs and services are supplied by JFE, which retains a 49% interest in NKKTubes. Tenaris operates a premium connections and coupling threading facility in Qingdao, China, and a joint venture threading facility in India. In Indonesia, Tenaris has an OCTG processing business with heat treatment and premium connection threading facilities. The plant is located in the Krakatau industrial park, 100 kilometers from Jakarta. Middle East and Africa Tenaris started up a premium threading operation in Saudi Arabia and in 2011 expanded its operations in Nigeria through a joint venture with the leading pipe coating company. Tenaris 23

26 Tubular Technologies of Tomorrow Tenaris is at the forefront of developing the tubular technologies required for operating in the world s most demanding environments, not only to meet the challenge of drilling in extreme conditions of pressure and temperature but also in high performance mechanical and structural applications. Tenaris has set up a worldwide research and development organization committed to developing new products and to constantly improving existing products and manufacturing processes. R&D activities are carried out at specialized research facilities and support centers located in Argentina, Brazil, Italy, Mexico and Japan. The PROA Foundation in Buenos Aires, sponsored by Tenaris, held one of its most successful exhibitions ever, of sculptor Ron Mueck. Tenaris is responsible for developing and testing the tubular materials used in many of the world s most advanced oil and gas exploration, production and processing activities and in specialized mechanical applications. Research explores the boundaries of material science and mechanical design to develop the most advanced products to meet the needs of customers. For companies that have moved beyond traditional operations to explore new fields in complex environments Tenaris offers an ever broader gamut of options and solutions. techint group companies 24

27 TenarisUniversity Tenaris has established a corporate university, TenarisUniversity, to integrate, align and disseminate knowledge across the company. TenarisUniversity s core activity is training, with a variety of courses customized to fit the needs of employees at every stage of their careers. Training is effected through six Schools - Industrial, Commercial, Finance & Administration, Management, IT and Technical - and delivered via multiple venues and formats that include e-learning, classroom lectures, case studies and simulations. Most training is carried out regionally but in some cases, global events are held that bring together Tenaris employees from all over the world and provide a rich opportunity for the sharing of knowledge and experience, facilitating Tenaris efforts to build a unified corporate culture. In November 2013 Tenaris University announced a collaboration with edx, the not for-profit online learning initiative founded by Harvard and MIT. Through this collaboration edx will provide training and consulting for online course development to expand training and education for the almost 27,000 Tenaris employees around the world. Finally, Tenaris co-sponsors the Roberto Rocca Education Program, named after the Techint Group s late Chairman, an initiative that provides scholarships and fellowships to talented undergraduate and graduate students of engineering and the applied sciences. Tenaris 25

28 Ternium techint group companies Our vision is to be the leading steel company in the Americas, committed to the development of our customers, at the forefront in industrial standards and standing out through the excellence of our human resources. 26

29 Ternium 27

30 Ternium 3 In the previous pages: The Ternium Industrial Center located in Pesquería, Mexico, includes the Ternium cold rolling mill and the Tenigal continuous galvanizing line; the center produces high-end steels mainly for the automotive industry. Ternium is a leading steel producer in Latin America. It manufactures and process a broad range of value-added steel products, including galvanized and electro-galvanized sheets, pre-painted sheets, tinplate, welded pipes, hot-rolled flat products, cold-rolled products, bars and wire rods as well as slit and cut-to-length offerings through its service centers. Ternium s customers range from global companies to small businesses operating in the construction, automotive, home appliances, capital goods, container, food and energy industries. The company aims to build close relationships with its customers and recognizes that its success is closely linked with theirs. The proximity to local steel consuming markets enables Ternium to offer valuable services to its customer base across Latin America. Favorable access to iron ore sources and proprietary iron ore mines in Mexico make for reduced logistics costs, while diversified steel production technology enables the company to adapt to fluctuating input-cost conditions. Ternium has an annual production capacity of approximately 10.9 million tons of finished steel products and 4.0 million tons of iron ore pellets and supports its operations with 16,800 employees sharing a deeply ingrained industrial culture. The company has production facilities located in Mexico, Argentina, Colombia, the southern United States and Guatemala, as well as a network of service and distribution centers throughout Latin America that provide it with a strong position from which to serve its core markets. In addition, Ternium participates in the control group of Usiminas, a leading steel company in the Brazilian steel market. techint group companies Steel Mexico During 2013, Ternium was the leading supplier of flat steel products in Mexico. Shipments to this market remained relatively stable year-over-year at 5.0 million tons, representing 56% of Ternium s total steel shipments. Ternium has twelve steel production and/or processing units in Mexico, consisting of three integrated steel-making plants, based on DRI-EAF technology (two of which produce long steel products and one of which produces flat steel products and includes two steel service centers), five downstream flat steel processing plants combining hot-rolling, cold-rolling and/or coating facilities (two of which include steel service centers), and four steel service centers. In addition, Ternium has ten retail distribution 28

31 centers in this region, aimed at serving customers mainly in the construction sector. In 2013, Ternium inaugurated a new industrial center in Pesquería, Nuevo León, Mexico. The project was developed partly by Ternium in Mexico and partly by Tenigal, a company in which Ternium and Nippon Steel & Sumitomo Metal Corporation hold participations of 51% and 49%, respectively. Through its two state-of-the-art main production lines - Ternium s cold-rolling mill and Tenigal s hot-dipped galvanizing mill - this center will produce high-end steel mainly for the automotive industry, with annual processing capacity of 1.5 million tons of cold-rolled steel and 400,000 tons of galvanized steel. The ramp-up of these facilities is expected to be mostly completed during the first half of This steel complex is the most modern of its kind in Latin America and represents a strategic asset for Ternium s Mexican industrial system. The technologies introduced by Tenigal and the high quality requirements and standards of the new steel products set a milestone for Ternium s research and development efforts. Southern Region The Southern Region encompasses the steel markets of Argentina, Bolivia, Chile, Paraguay and Uruguay. During 2013, Ternium was the leading supplier of flat steel products in Argentina and a leading supplier of steel products in Paraguay and Uruguay. Shipments in the Southern Region increased 7.7% year-over-year in 2013 to 2.6 million tons, representing 29% of Ternium s total steel shipments. Ternium produces 3.9 million tons of iron ore pellets at its facilities located in Colima, Jalisco and Michoacan, Mexico. Ternium 29

32 Zero discharge water plant at the Ternium Industrial Center in Pesquería, Mexico. Ternium has eight steel production and/or processing units in this region, located in Argentina, consisting of one integrated flat steel-making plant, based on blast furnace technology, producing slabs, hot-rolled, cold-rolled and tinplate coils; four downstream flat steel processing plants comprising cold-rolled, hot-dip galvanized, electrogalvanized and color-coated coils (three of which include steel service centers); and three steel service centers. During 2013, Argentine Ternium Siderar made progress in several projects, including the expansion of specialty steel production capacity through a new vacuum degassing station, repairs at the coking and blast furnace areas, and the expansion and enhancements of the hot strip mill. techint group companies Other Markets During 2013, Ternium was a leading supplier of steel products in Colombia and Central America. In addition, Ternium continued serving customers in the southern United States and in other countries throughout Latin America. Shipments to these markets remained relatively stable year-over-year in 2013 at 1.4 million tons, representing 15% of Ternium s total steel shipments. Ternium has a total of fifteen steel production and/or processing units in Colombia, Guatemala and the United States, consisting of one integrated long steel-making plant, based on EAF technology, which produces bars for the construction industry, two downstream flat steel processing plants, comprising hot-dip galvanized and pre-painted coils (one of which includes a steel service center) and twelve steel service centers. Ternium has also four retail distribution centers in Central American countries. 30

33 Crude steel production at the Colombian facilities in 2013 was similar year-over-year, but Ternium s shipments in the country decreased slightly in 2013 as a result of less processing of purchased steel. Ternium s shipments to Central America increased strongly in 2013 on the back of continued expansion in the region, while shipments to the Peruvian and Ecuadorian markets decreased year-over-year in 2013 as Ternium prioritized shipments to other markets. Ternium s plants in Colombia, Guatemala and United States increased utilization rates at their finishing facilities. Ternium s Colombian company Ferrasa completed the installation of a new de-dusting system at its steel shop, which enables the facility to increase steel production by approximately 25% while ensuring that its emission levels comply with Colombia s environmental regulations. Mining All of Ternium s mining operations are located in Mexico. Mining concessions were granted for a 50-year period. Following the expiration of the initial concession term, the concessions are renewable for an additional 50-year term in accordance with, and subject to the procedures set forth in Mexican mining laws and regulations. Shipments of iron ore reported by Ternium mainly include those originating from Mexican subsidiary Las Encinas and, starting in 2013, 50% of those originating from Peña Colorada, a company owned 50% by Ternium and 50% by ArcelorMittal. Iron ore production in Las Encinas and Peña Colorada is destined mainly to internal consumption by Ternium s steel plants. In 2013, Ternium s mining segment reported shipments of 4.2 million tons of iron ore, a 128% increase compared to 2012 primarily attributed to the proportional consolidation of Peña Colorada effective January 1, Usiminas In January 2012 Ternium Siderar and TenarisConfab completed the acquisition of a participation in the control group of Usiminas, a leading steel company in the Brazilian steel market that has crude steel annual production capacity of 9.5 million tons. Usiminas has strategically located facilities near the main consumers of steel in Brazil and iron ore mines in the Serra Azul region. Usiminas continued its ongoing turnaround process, showing a remarkable improvement in Shipments to the domestic market reached a five-year Ternium 31

34 record of 5.4 million tons. At the same time, EBITDA margin increased to 14%, enabling Usiminas to return to profitability. This increase in returns, coupled with a stringent capital expenditures control, enabled the company to significantly improve its financial position. Support Program for Small-and Medium-Sized Enterprises Ternium sponsors, as it has done for more than ten years now, a small-and medium-sized enterprise (SME) support program called ProPymes. Created by the Techint Group in 2002, the program is focused on helping SMEs in the steel industry s value chain to grow. The program s ultimate goal is to enhance SMEs competitiveness and to stimulate investments in the steel industry s value chain. To achieve this, ProPymes provides a diversity of services including training, business advisory, institutional assistance, commercial support and financial aid. Ternium supervises the execution of the ProPymes programs through two departments operating under local management supervision in Mexico and Argentina, currently assisting a total of approximately 890 SMEs. Research & Development Ternium produces a wide range of steel products with the best technology to supply customers in several industries: from construction and home appliances, from energy to automotive. Ternium continuously seeks to introduce new value-added products and transform its technical knowledge into competitive advantages. Product research and development activities in Ternium are conducted through a central Product Development Department in coordination with local teams that operate in several facilities. Applied research is carried out in-house and techint group companies 32

35 in conjunction with universities and research centers, as well as through the participation in international consortia. Ternium develops new products and processes in cooperation with its industrial customers. During 2013, Ternium continued participating in leading research for the development of new products. Consortia projects included the development of high-strength steel for applications in the pipe manufacturing and automotive industries, with the University of Pittsburgh, and the development of new coating technologies for applications in the automotive industry and of improvements in the galvanizing bath to optimize processes, with the International Zinc Association. The repair works of the #2 blast furnace at the General Savio mill in Argentina included the change of copper staves, the complete change of the melting pot, and the improvement of the cooling system. Ternium s product research and development efforts focused mainly on initiatives aimed at supporting customer requirements for products to be manufactured at our new industrial center in Pesquería and on increasing market share in the automotive and industrial steel markets. The steel complex is currently the most modern of its kind in Latin America, and requires a new set of product research and development activities targeting applications for advanced steels with high quality standards. During the year Ternium also completed the implementation of a new IT system in Mexico that fully integrates product and processing route specifications among its Mexican plants. These efforts, initiated in 2012, enabled significant optimization of processes and products that resulted in improvements in productivity and costs, and decreases in inventory volumes. Ternium 33

36 Techint engineering & construction techint group companies In undertaking complex projects Techint Engineering & Construction aims to achieve growth, innovation and results with maximum attention to quality of life, working standards and sustainable economic growth, all the while adapting to different local cultures and conditions. 34

37 techint engineering and & construction 35

38 Techint Engineering & Construction 3 In the previous pages: The GTL liquefaction and transformation plant in Escravos, Nigeria, is the only one of its kind in Africa and the world s largest. TECHINT ENGINEERING & CONSTRUCTION HIGHLIGHTS About 22,000 employees. More than 3,500 engineering and construction projects completed worldwide. Over 70,000 km of pipelines. 18 pipelines laid on the Andes mountain range, some reaching altitudes of 5,000 m above sea level. Over 1,000 units completed in chemical and petrochemical plants. Over 23,000 km of power lines. 74,000 MW installed in power plants. Over 7 million kva installed in substations. 450 oil & gas processing plants. Techint Worldwide Techint Engineering & Construction provides engineering, procurement, construction, operation and management services for projects of great importance in worldwide locations. The company s multi-local presence allows it to have deep knowledge of the technical standards, laws and regulations, taxes, financial entities, labor unions and subcontractors in the regions where it operates. Thanks to its large experience in the market, Techint Engineering & Construction can develop high complexity projects, from design to execution, taking care of the environment and the welfare of communities. With over sixty five years of experience and employing 22,000 people worldwide, the company has completed more than 3,500 projects in compliance with ISO/BS/OHSAS international standards in America, Europe, Asia and Africa. Currently, the company delivers services in the following market segments: Oil & Gas, Energy, Industrial Plants, Oil Refineries and Petrochemical Plants, Mining, and Infrastructure & Architecture Civil Works. techint group companies MARKET SEGMENTS OIL & GAS ENERGY INDUSTRIAL PLANTS OIL REFINERIES AND PETROCHEMICAL PLANTS MINING INFRASTRUCTURE & ARCHITECTURE CIVIL WORKS CORE PRODUCTS Pipelines for oil, gas and byproducts transportation; oil and gas treatment plants; offshore works and maritime terminals; facilities associated with transportation systems (compression and pumping stations, storage tanks and other surface facilities); LNG plants. Simple and combined cycle power stations; hydroelectric power stations; nuclear facilities; renewable energy; transmission lines; transformer substations. Iron and steel plants (facilities and industrial services); other plants (metallurgical, pulp and paper, aluminum production, for construction materials, for home appliance manufacturing, and for material handling). Oil refineries (units for process, treatment and production, gasoline and diesel hydrotreatment and hydrodesulfurization plants); petrochemical plants (chemical, methanol, fertilizer, agrochemical and herbicide, polyethylene and polypropylene, and hydrogen production). Civil works (routes, access roads and ports); aqueducts and ore pipelines for mineral processing plants; industrial and service structures and buildings. Hospitals; bridges; underground railways; roads; highways; water and sewage treatment plants; buildings and aqueducts. 36

39 Multilocal Presence Argentina Established in 1946, Techint Compañía Técnica Internacional is the leading engineering & construction company in Argentina and one of the most important in Latin America. The company - which has participated in the largest and most technologically complex projects in the country covering all market segments - has established credentials as one of the world s major pipeline builders and as a prime contractor for oil refineries and chemical or petrochemical plants. The company is especially recognized for its capability to develop complex infrastructure projects in harsh geographical areas, as manifested by the laying of 18 trans-andean pipelines, as well as other projects in remote locations. In the past few years, the company has also carried out numerous civil and architectural works related to urban development projects. Furthermore it is developing important mining ventures, aiming for a strong positioning in that segment. Through years of engaging in engineering, construction and maintenance of steel plants, the company has acquired a deep understanding of the steel industry which it has translated into the rendering of services such as electromechanical maintenance, steel mill heavy cleaning, light industrial cleaning, complete packaging system for cold-rolled coils (including the supply of packaging materials) and refractory works. In Pontal do Paraná Techint executed works for a wellhead platform to be installed in the Campos Basin in the state of Rio de Janeiro. techint engineering and & construction 37

40 Brazil Established in 1947, Techint Engenharia e Construção has contributed to Brazil s development by undertaking over 1,100 projects, providing engineering, procurement and construction of oil and gas refining, treatment and transportation facilities; chemical and petrochemical complexes; iron, steel, non ferrous metal and nuclear plants and basic sanitation and educational structures. It has played a particularly outstanding role in the oil and gas sector in this country: achievements include laying more than 13,000 km of pipelines (60% of the existing oil and gas pipeline system in Brazil), participating in the construction of jackets, integrations and modules for offshore platforms, laying offshore pipes, and supplying hook-up and maintenance services to major Brazilian clients, including Petrobras for whom the company has executed over 250 projects. Chile Established in 1951, Techint s initial activities in Chile included the construction of roads, highways and civil works for the public sector. In the past few years, the company has focused on the development of engineering, procurement and construction (EPC) projects for the oil and gas sector and the mining industry. Techint has built most of the relevant oil and gas pipeline projects in the country such as the Transandino oil pipeline and the NorAndino and GasAndes gas pipelines. In addition, the company has worked in the engineering of petrochemical projects for the national oil company ENAP. Techint is increasingly involved in mining projects that range from electromechanical facilities to slurry pipelines for clients such as BHP Billiton and Anglo American. techint group companies Egypt Established in 1974, Techint has carried out major projects in the pipelines, refineries, sea-lines and marine platforms, power generation, oil & gas and petrochemical fields. The company has successfully executed more than 40 large projects, participating in the construction of 15 conventional or combined cycle power plants, as well as major petrochemical and process plants. Thanks to its consolidated know-how and experience, the company covers all the local aspects necessary to handle any kind of large industrial project. India Established in May 2010 in Mumbai, Techint has approximately 200 employees and works closely with the Engineering Department in Milan, especially in 38

41 the detailed engineering area, during both the proposal and project execution stages. Techint India has also strong capability in procurement services and in E&I work in Middle Eastern countries. The creation of the Indian company answers the need to increase the availability of engineering resources, while maintaining high design quality and containing costs. Italy Founded in 1945, Techint Compagnia Tecnica Internazionale is the forerunner of today s extensive group of Techint engineering and construction companies, and is considered one of the most prestigious E&C companies in Italy. This fully integrated organization specializes in the design, engineering and construction of industrial plants and major infrastructure projects. Over the years the company has developed a special expertise in refineries, petrochemical plants, power plants, LNG regasification plants and health care facilities. Mexico Techint is one of the leading EPC companies in Mexico, specializing in lump sum turnkey projects for the energy, oil and gas, petrochemicals and steel industries. Established in 1954, the company has grown steadily in the last ten years by participating in the most important industrial and infrastructure projects in Mexico and Central America such as pipelines, petrochemical and The Norte II combined cycle power plant in Chihuahua, Mexico, where Techint E&C has worked in partnership with Samsung Engineering and Kapoc. techint engineering and & construction 39

42 gas plants, steel plants, hospitals, hydroelectric and combined cycle power plants, transmission lines and electrical substations, coal handling facilities, coal and pet coke fired power plants. Techint has built more than 7,500 km of high voltage transmission lines, more than 5,000 MW of power generation plants, and high voltage electrical substations for a total capacity of 4,500 MVA. The company has also built in 1999, and operated since then, the 6 million ton coal-handling terminal in Lázaro Cárdenas, Michoacán. Hydrometallurgical plant for Minera Chinalco s Toromocho mining project in Peru, at 4,800 meters above sea level. Nigeria TCM Nigeria Ltd was established in 1989 with the aim of promoting and offer to the Nigerian growing industrial market the services of its experience and skills acquired in over 20 years of successful activity all over the world. The services offered range over engineering, procurement, construction, civil works, mechanical /electrical / instrumentation works, commissioning and operation assistance for the realization of power generation plants, petrochemical plants, liquefied natural gas plant, refineries, pipelines and production facilities. The company is working on the promotion and development of local content in partnerships with local companies aiming to increase domestic employment and procurement of materials and services for projects executed in the country. techint group companies 40

43 Peru In 2009 Techint established new headquarters in Lima. The company has successfully carried out major projects in the oil and gas sector and in energy and mining, including the construction of one of the major infrastructure projects in Latin America: the Camisea gas and NGL pipelines, 730 and 560 km long, which run from the Peruvian rainforest across the Andes mountains to the city gate in Lima, and to near the port of Pisco respectively. Russia In 2011 Techint E&C opened a new branch in Moscow to strengthen its local commercial operations. The branch has enabled the company to consolidate relations with key customers resulting in new important feasibility studies and front end activities for gas treatment and petrochemical plants. Techint E&C in Russia supports the project task forces in maintaining excellent relations with clients and partners and coordinating project development activities. The branch also assists in achieving greater penetration in neighboring CIS markets. Uruguay Techint began operations in Uruguay in 1956 and has focused its activities on roads, highways, airports and other civil infrastructure works. techint engineering and & construction 41

44 The new aspiration system for Ternium s steel shop in Manizales, Colombia. Other Countries Techint has maintained a permanent presence and leadership in the engineering and construction market in several countries in Latin and North America, the Middle East and Africa. Since 1974, Techint has been one of Ecuador s leading companies in project engineering, construction and financing. It has built the Heavy Crude Oil Pipeline (OCP) and facilities, one of the largest and most difficult projects in its history. techint group companies In Colombia, the company has been active since 1979, particularly in oil & gas industry projects, such as pipelines, crude oil processing facilities and terminals, as well as civil infrastructure projects. The company has also developed many projects in the refining segment in Trinidad and Tobago, mainly with Petrotrin, the state company responsible for oil refining in the country. In 1978, Saudi Techint Ltd. started working in the Middle East, with a major gas pipeline project (the Shedgum-Yanbu pipeline), located in Saudi Arabia. Since then, Saudi Techint Ltd. has been involved in various projects that range from pipelines to industrial plants and water systems, particularly with the company s main client in the region, the national oil company Saudi Aramco. 42

45 Today the company has a workforce of about 600 people, active in operations, procurement, engineering, administration and management, and is focusing on projects in petrochemicals, refineries and gas treatment plants, where it has successfully completed very important contracts. Since many years Techint has also been active in the United Arab Emirates with a branch located in Abu Dhabi working to support the facilities for the major oil and gas, chemical and petrochemical, infrastructure and power generation clients in the country and sustaining the GCC activities such as in Oman, Qatar and Kuwait. Techint has established a branch in Algeria. The company assures international standards and complete services from construction to installation and maintenance of industrial plants, including oil and gas and petrochemical plants, power plants and oil refineries. Techint Engineering & Construction is also present in Canada, the Caribbean, Libya and other countries. techint engineering and & construction 43

46 2013 Reference List The main worldwide projects in which Techint Engineering & Construction has been involved during 2013 are listed below. They represent the more prominent part of an activity that in the 12-month period ended on December 31, 2013 resulted in overall sales of USD 2.8 billion, with a backlog of USD 2.4 billion. In Buenos Aires, Argentina, the company is developing the country s most important subway project in the last 60 years: the expansion of the H Line. Except for major works, the list does not include projects involving engineering, procurement, construction, maintenance, logistics and other services provided by Techint on a competitive basis to the oil and gas blocks, and to the steel mills belonging to companies of the Techint Group. In particular, services to the steel business represent a time honored, distinguished specialization steeped in the industrial culture of the Techint Group. techint group companies 44

47 OIL AND GAS 4 In Belgium, Techint E&C in a joint venture with Sener was awarded a contract for the expansion of the LNG terminal in Zeebrugge on an EPC LS basis, a further confirmation of Techint E&C leadership in this field. 4 In Brazil, Techint E&C worked on the construction of one fixed offshore platform consisting of topside, jackets and stakes. The project required the previous expansion and complete retrofitting of the construction site. Also in Brazil, the detailed engineering stage of the FPSO P-76 project for Petrobras has begun. The construction activities will start in the Techint Offshore Unit in 2014, carried out in consortium with Technip. 4 In Colombia, front-end engineering activities went ahead on the OAP (Oleoducto al Pacífico) heavy crude pipeline for Embridge, involving the dilution pipeline, pumping and regulation stations, marine terminal and the crude heating system. 4 In Ecuador, works proceeded for Shushufindi project, consisting in the full design, construction and installation of all equipment and facilities required for the exploitation of the block. In addition, Techint E&C has started the construction of the water treatment plant. 4 In Mexico, the works carrried out for the Tamazunchale Facilities EPC project include the 630 MMcfd compression station, one measurement, one pressure regulation & control, and two delivery meter stations on the Tamazunchale Pipeline Extension. In the same market segment, Techint E&C worked on the Naranjo project facilities, including three measurement stations, a new compression station and the expansion of the Tamazunchale gas pipeline from 465 to 865 MMscfd. Also in Mexico, another ongoing project was the Ethane Pipeline project, a 225 kilometer long and 24, 20 and 16 diameter pipeline, including all facilities, in the states of Tabasco, Chiapas and Veracruz. The scope includes: environmental impact assessment; environmental and government permits; land acquisitions; engineering, procurements and construction services; pre-commissioning; commissioning & start-up. 4 In Northern France, works proceeded on a LNG regasification plant in Dunkerque for EDF. The plant has an annual capacity of 13 billion cubic meters of gas and is one of the largest methane terminals in Europe. Techint E&C is developing the project on an EPC basis in joint venture with Sener. 4 In Peru, a full range of maintenance work was performed for gas transportation company COGA (Compañía Operadora de Gas del Amazonas) along the Camisea gas pipeline system. At the Malvinas base, the EPC-30 Camisea well head compression project for Pluspetrol Perú Corporation went ahead with the installation of two compression trains with a maximum entry capacity of 1,000 MMscfd, a 30 MW turbine and the corresponding auxiliary facilities. 4 In Poland (Swinoujscie), the construction activities on the LNG terminal for Polskie were executed. The project is a partnership between Techint E&C, Saipem and a local partner. 4 In Russia, Techint E&C went ahead with the engineering activities of a plant for the 95% reduction of sulfur dioxide pollution at the Norilsk nickel works in Siberia. This plant will be located beyond the 70 North parallel where winter temperatures drop to 50 C below zero. The project is a new technology prototype studied in pilot plants built for the purpose. 4 In Saudi Arabia, in Al Khafji, the construction phase of the Hout Crude Facilities project for KJO (an AGOC/KGOC joint venture) has been almost completed. techint engineering and & construction 45

48 ENERGY 4 In Argentina, works proceeded in the construction of the Punta Negra hydroelectric plant in the province of San Juan. This project includes the assembly and start-up of a hydro generator (with 2 x 31 MW Francis-type turbines), a high-voltage line and main sub-stations. 4 In Egypt, Techint E&C worked on the mechanical equipment and piping installation for the El Ain Sokhna thermal power plant, consisting of two supercritical units of 650 MW each, for the East Delta Electricity Production Company. The plant start-up is scheduled for In Italy, Techint E&C has begun the activities of the LSTK contract for the construction of a grouting plant for the conditioning of low-level radioactive solid waste at the European Commission s Joint Research Center in Ispra. 4 In Mexico, works proceeded on the combined cycle power plant Norte II in Chihuahua. The scope includes engineering, procurement, construction and operation of a 433 MW plant in partnership with Samsung Engineering and Kapoc. Techint E&C is in charge of the construction of the balance of plant. 4 In Peru, Techint E&C has concluded the Fenix 520 MW thermal power plant project for SNC Lavalin / Fenix Power Perú SA, consisting in the installation and mechanical assembly of a steam turbine, condenser, piping, the balance of plant and the electric controls. 4 In Uruguay, Techint in temporary partnership with Usinas y Transmisiones Eléctricas went ahead with the high voltage 500 KV power line interconnecting Uruguay and Brazil in two spreads: the San Carlos-Melo (283 Km) and the Melo- Brazil Border (65 Km). 4 Techint E&C has a long experience and a significant number of references in the field of nuclear waste management and it is currently developing two major projects. The first is the Andreeva Bay project, for Moscow-based customer UGP that consists in the decommissioning and the safety setting of a nuclear submarine base on the Barents Sea. The second one is the completion of sludge extraction and liquid waste grouting station at the Latina nuclear power plant, for Rome-based client Sogin. INDUSTRIAL PLANTS 4 In Colombia (Manizales), Techint E&C has concluded the activities for Ternium s ACASA steel plant for long products consisting in the installation of a fumes and dust aspiration system. 4 In Mexico, Techint E&C has completed Ternium s new Pesquería plant near Monterrey. The new facility includes a cold-rolling mill and a hot-dip galvanizing plant, the latter under a joint venture with Nippon Steel & Sumitomo Metal Corporation. techint group companies OIL REFINERIES AND PETROCHEMICAL PLANTS 4 In Abu Dhabi, UAE, Techint E&C worked on an EPC LS contract involving a sulfur handling plant located in Ruwais. 4 In Brazil, Techint E&C worked in the Comperj petrochemical complex of Petrobras. The activities scope includes the installation of a retarded coking unit, coke management and storage yard, and unit power sub-stations. The project is developed in partnership with Andrade Gutierrez. 4 In Nigeria Techint E&C has completed the activities for the construction of a Gas to Liquid Plant in Escravos. 4 In Saudi Arabia, Techint E&C carried on the activities for the solid coke and sulfur handling and export facilities at the Yanbu refinery for Saudi Aramco. For this project, the client officially delivered Techint E&C the prestigious Silver Banner, indicating that the overall HSE performance was excellent. 46

49 MINING 4 In Santa Cruz, Argentina, Techint E&C is managing the procurement and construction for the companies contracted by its customer GoldCorp for the execution of the Cerro Negro project which started in July In the Pascua-Lama project, Techint E&C advanced in the construction of three mills and the stock pipe building, among other works. 4 In Chile, in the Antofagasta region, works proceeded on the Minera Escondida Limitada (MEL) project, the world s largest copper mine by production, consisting in mechanical maintenance in the two concentration plants and in the dry area of the cathodes plant. In Antofagasta, the Sierra Gorda project was being developed which includes the construction of a 143 km, 36 water pipeline with two pumping stations and the intake and terminal stations. In Copiapó, EPCM services for the CAP-APVH project were carried out consisting in the enlargement of the Los Colorados plant and the pellets plant in order to increase the production of iron ore concentrate. 4 In Peru, the Toromocho mining project advanced on track and with good perspectives in the mountains at more than 4,800 meters above sea level. The contract awarded by client Minera Chinalco consists in the construction of the hydrometallurgical and molybdenum filtering plants of the copper mine. The scope of work comprises engineering, procurement and construction of piping, electricity and instrumentation of all the plants in the mine; the reactants, lime and neutralizers plants; a 24 water pipeline in HDPE and a number of other mechanical and civil construction works. INFRASTRUCTURE AND ARCHITECTURE CIVIL WORKS 4 In Buenos Aires, Argentina, Techint E&C in partnership with Dycasa is executing the H Subway Line project, consisting in the engineering, procurement, construction and commissioning services for two sections of the Subway. The scope of work comprises 6.1 km of tunnels and the construction of six stations. Civil and electromechanical works are being developed, including tracks, power installations, traction, signaling, communications, escalators, elevators and stations equipment. 4 In Iraq, Techint E&C has signed the letter of intent preliminary to the contract signature with ENI on the new village for the Zubair Oil Field project, located near Basra. It consists in the design and construction of a highly technological village for ENI and SOC employees, including all the accessory facilities and infrastructures. 4 In Italy, work is going ahead on the construction of the new Milan polyclinic. At the Poliambulanza General Hospital in Brescia, the design phase for the construction of a new maternity, pediatrics, operating rooms and intensive care buildings is in progress. Techint E&C is also participating in a Ministry of Education tender with the project Smart Healthcare for a Smart City in a joint venture with the Polytechnic of Milan and other partners. The project has been admitted to the second stage of detailed design. In Castellanza, Techint E&C carried out the feasibility study, concept and preliminary design for the new offices of Tenova Pomini. 4 Also in Italy, Techint E&C is leader in the SA.T. S.p.A. special-purpose entity, handling a project finance concession for four new hospitals in Tuscany (in Prato, Pistoia, Lucca and Massa), for a total of 1,710 beds; work on the hospitals is close to completion and SA.T. S.p.A. (part of Techint E&C) began providing O&M services in mid-2013, for a 19-year period. In Rozzano, Techint E&C developed the conceptual design, preliminary and final for the restructuring of approximately 4,000 sqm of the Cascina Perseghetto project, composed of a surgical unit of 6 operating rooms and a new central plant. 4 In the UAE, Techint E&C has been prequalified to participate in the prestigious Sheikh Khalifa Medical City project for the construction of the new medical city in Abu Dhabi, for a total of 840 beds. 4 In Canelones, Uruguay, works proceeded on the Ciudad de la Costa project. It involves the construction of a 33 km network of PVC and PRFV piping, three artificial basins for rain water flow control and a network of streets. Other projects under way in the country include the construction of a port in the free trade zone of Punta Pereira for Montes del Plata involving, among other works, the dredging of the basin and the access canal; the construction of a wastewater disposal system for the Maldonado and Punta del Este municipalities for Obras Sanitarias del Estado (OSE) including pumping stations, treatment plant and related system of PVC and PRFV pipelines. techint engineering and & construction 47

50 tenova techint group companies Tenova provides the metals and mining industries with the most advanced technologies, products and engineering services through a worldwide network of synergic companies. 48

51 tenova 49

52 Tenova 3 In the previous pages: 12,000 tons/hour ship loader installed at the Nouadhibou terminal for the Société Nationale Industrielle et Minière (SNIM), Mauritania. Tenova is a leading supplier of technological solutions and engineering services for the metals and mining industries all over the world, covering the key segments of the metallurgical process and the entire mining value chain. Its product portfolio embraces distinguished technologies and brands, with plenty of references in all countries, serving top tier customers in each industry. Combining process and automation know-how Tenova provides its customers with high added value solutions. To strengthen and enhance its offer in key sectors of the metals market, in 2013 Tenova completed two important acquisitions of specialized German companies. Tenova s heat treatment know-how and competences were integrated and expanded through the acquisition of Metall Technologie Holding GmbH (MTH) a worldwide manufacturer group of industrial furnaces controlling the companies Schmetz, BMI, Mahler, IVA/RIVA and Huisen-MTH. The companies are leading suppliers of industrial heat treatment technology solutions, both for vacuum and atmospheric furnaces, in the aerospace, machine tooling and automotive industries. The second acquisition, of Technometal GmbH, marked the growing path of Tenova in the secondary metallurgy market. Technometal specializes in steel production processes and refining, with expertise in plant design, procurement, start-up, training and consulting, and has a particular know-how in vacuum treatments. Leveraging on these further skills Tenova has become a relevant player at a global level providing treatment plants designed for the integrated steelmaking route. techint group companies 50

53 The consistent integration of industrial know-how from high-tech companies allows Tenova to set a unique expertise in the metals industry and reaffirms its role of catalyst of the best resources and competences on the market. Tenova today has a worldwide presence through different companies active in the metals and mining & minerals businesses located in 26 Countries in 5 continents, all of them distinguished by a common feature: technical excellence supported by a core of constantly evolving engineering expertise. Tenova provides technological solutions through its products and services, targeting the needs for quality, efficiency and environmental safeguard of its clients. The main products supplied are: Metals industry Direct Reduction Plants Tenova is active in the direct reduction business through HYL. The company, based in Mexico, is the pioneer of modern direct reduction, developing and supplying leading-edge DR technologies. Tenova HYL and Danieli, a leading Italian firm in the iron and steel industry, have formed a strategic alliance to serve the DR plant market. Under the alliance, the two companies have combined their know-how and technology for the design and construction of gas-based DR plants, offered worldwide under the ENERGIRON trademark. The ENERGIRON process reduces iron ore to a highly metallized, carbon rich DRI (Direct Reduced Iron) and HBI 215 t/h Rotary Hearth furnace for blooms reheating at TenarisDalmine, Italy. tenova 51

54 (Hot Briquetted Iron) using natural gas, coke oven gas or syngas as fuel and reducing agent. Plant sizes range from the 200,000 tons per year (tpy) Micro-Module design, to plants producing 2.5 million tpy or more in a single module. HYL also supplies the HYTEMP pneumatic system for the transportation of hot DRI directly from the exit valve of the direct reduction plant into the electric arc furnace. The company has broadened its technological offering in the DR market to include supply of process gas heaters and CO 2 removal plants. DIRECT REDUCTION PLANTS 4 Nucor Corporation (USA) started up the world s largest single DR module ever constructed, a 2.5 million tpy Energiron ZR plant using state-of-the-art reformerless process design. The plant is located in Louisiana, and will supply highly metallized, high carbon DRI to Nucor steel plants. Operations began on Dec. 24, After difficulties in the region, the 2.0 million tpy Suez, Egypt, Steel DRI plant based on the ZR process is starting operations and is under commissioning. 4 Ezz DRP plant in Egypt resumed activities and is completing construction works. Start-up expected by Revamping works at Hadeed Module E HYL DRP were completed and successfully tested. The plant is now under steady state operation. 4 Engineering work is underway for a 2.5 million tpy Energiron plant for Jindal Steel & Power Limited of India. The plant will use a mixture of syngas and coke oven gas as reducing agents instead of natural gas. Melt Shops In the steelmaking process, Tenova provides tailor-made solutions through the Melt Shops business units, a one-stop shop capable of providing a fully integrated range of high-quality technologies and services for the industry. Solutions for electric arc furnaces (EAF) and ladle furnaces (LF) are integrated by: - Consteel EVOLUTION: the environmental friendly system for the continuous charging and feeding of electric arc furnaces; - Tenova KT system for an optimized injection of carbon and oxygen; techint group companies - EFSOP, ibof and ieaf for an holistic approach to real-time off-gases analysis for complete optimization of the EAF and BOF steelmaking process. Tenova Melt Shops full set of plants includes vacuum degassers, vacuum oxygen decarburization systems and BF/BOF route refining equipment (RH). The recent acquisition of Technometal GmbH has again boosted the offer of Tenova Melt Shop. The irecovery technology, a heat recovery system for EAF and other energy-intensive industries, completes the technologies provided by the business unit. Operations in the NAFTA market are supported by the engineering and process teams based in Tenova Core (USA) and Tenova Goodfellow (Canada) providing products and services for the melt shops facilities. 52

55 MELT SHOPS 4 The second application of irecovery, with integrated waste heat boiler, has been successfully started up at the Feralpi EAF in Riesa, Germany. 4 The 3rd contract for a Consteel EAF with continuous charging of hot metal for Xining Special Steel Co., Ltd, China. 4 Contract for a specialty steel plant including EAF / LF / VOD at Zhong Yuan Special Steel, China. 4 Contract for a 240 t RH / LF revamping project at CSN, Brazil. 4 A 180 t Twin RH Plant at Shagang ISCO, China and Steam Jet Pump Systems at POSCO STS Pohang, Korea were successfully commissioned. 4 Successful start-ups of ieaf in ArcelorMittal Dofasco, Canada, in Hadeed, Saudi Arabia and ibof in AK Steel, USA. Industrial Furnaces Tenova is a leading global supplier of reheating and heat treatment furnaces able to offer a full range of technologies for any complex furnace plant. Its technological market leadership, backed by hundreds of reference plants, draws from the long lasting experience inherited from Italimpianti and LOI Thermprocess. The most advanced reheating furnaces solutions are provided through Tenova Italimpianti and include ferrous and non-ferrous reheating furnaces for processing slabs, billets, blooms, beam blanks and rounds; furnaces for petroleum coke and carbon products; and furnaces for direct reduced iron as well as for metal reclamation and waste oxide recycling. The reheating furnaces are equipped with the FlexyTech in-house developed combustion technology and supplied with the latest flameless burners that guarantee very low NO x emissions, and a new generation of regenerative burners. An advanced control system allows also the best reheating performance under every operative condition. Tenova Schmetz horizontal front loading vacuum furnace. tenova 53

56 A full range of heat treatment furnaces is offered by Tenova LOI Thermprocess providing top-class ferrous and non-ferrous heat treatment furnaces for steel strips, hot formed material, automotive parts, pipes, wires and bars serving the steel, automotive and aluminum industries. The heat treatment for components offer has been further improved thanks to the know-how and references of the MTH companies Schmetz, BMI, Mahler, IVA/RIVA and Huisen-MTH - focused on the aerospace, machine tools and automotive industries - that have become assets for the whole business area. The main heat treatment products offered are: heat treatment and quenching of heavy plate; heat treatment of forged components; H2 - batch annealing (HPH); continuous annealing lines for Si-steel; melting, holding and casting for aluminum, Al strip, coil and foil annealing and heat treatment of Al components. The comprehensive product range includes both continuous and batch-type furnaces operated under controlled atmospheres or vacuum. The furnaces offer is integrated and broadened by the engineering teams based in the USA and South Korea. The American unit based in Tenova Core provides advanced solutions for reheating and heat treatment furnaces and supplies also car bottom baking furnaces for treatment/reheating of graphite electrodes used in industrial electric furnaces. South Korean Tenova Envita focuses on aluminum melting and holding furnaces and pollution abatement facilities like regenerative thermal oxidizers (RTO) and scrubbers. techint group companies INDUSTRIAL FURNACES 4 Hyundai and Tenova Italimpianti together with Tenova Envita signed a contract for the supply of a 160 t/h and 200 t/h walking beam furnace for long product billets and blooms to be installed in the new wire and bar mill of the Hyundai plant in Korea. 4 Gerdau Açominas released the preliminary acceptance certificate for the walking beam furnace in the Steckel Mill at the Ouro Branco plant in Brazil; final acceptance is expected at the beginning of A second furnace for plate mill is under installation in the same plant. 4 At the end of 2013 ArcelorMittal Saudi started the commissioning of the rotary furnace supplied together with LOI Thermoprocess Tianjin. The installation of the heat treatment furnaces is in the last phase and will be ready for commissioning in early The furnaces are in the new pipe mill plant in Al Jubal Saudi Arabia. 4 Tenova Italimpianti signed a contract with Tenaris for a rotary hearth furnace for pipe mills in Bay City, USA. 4 LOI Thermprocess has received the final acceptance for a state-of-the-art heat treatment line at Taiyuan Heavy Industries, China. Taiyuan is using the new line to produce railway wheels for the high speed lines. 4 Successful start-up of the first combined DCL heat treatment line for grain- and non-grain oriented electrical strip at Baosteel, China, supplied by LOI Thermprocess. 4 Voestalpine Special Steel placed an order for a new heat treatment plant in Dusseldorf, Germany, including 10 units comprising horizontal vacuum furnaces from Schmetz as well as vacuum tempering furnaces from IVA. 4 In China, LOI Thermprocess has received orders from the aluminum industry for six twin-chamber melting furnaces (TCF) in Tianjin and Suzhou. Another order has been placed by Nanshan Aluminium for five single-coil lifting hearth furnaces (SCL) for the annealing of aluminum coils. 54

57 Cold Rolling Mills Tenova designs and manufactures cold rolling mills, auxiliary equipment and mill control systems for the ferrous and non-ferrous metal industries through I2S, an integrated manufacturer that designs, fabricates, installs and services a wide range of cold reduction mills. Rolling applications include reversing, tandem, temper/ skin pass, bonding and specialty mill flat strip product (carbon steel, stainless steel, silicon steel copper based alloys, and special alloys). Since its foundation in 1974, Tenova I2S has developed strong competencies and experience in building and modernizing over High and Vertical Stack mills (2-4-6 High). The company supports a full range of advanced automation and control systems as well as its established line of thickness gauges that provide for the production of the highest quality strip, from the tightest tolerances for heavy gauge plate, to 20 microns tolerance precision strip. COLD ROLLING MILLS Tenova I2S was awarded some important contracts to supply: 4 a 2 High cold rolling mill for iron-nickel alloys, stainless steel and clad materials for Foshan Tongbao Precision in Guangdong, China; 4 a 2 High cold rolling mill for specialty materials to Posco Energy, Pohang, So. Korea; 4 a 6 High cold rolling mill for carbon steel to PT Surabaya Steel in Surabaya, Java, Indonesia; 4 a 20 High cold rolling mill for stainless steel and clad materials to Wenzhou Hiher Thermal Control in Zhejiang Province, China; 4 a 2 High cold rolling mill for specialty materials to J.V. Manufacturing in Pennsylvania, USA; 4 a 20 High cold rolling mill for copper and copper based alloys to Anhui Xinke New Materials in Anhui Province, China; 4 a 2 High skin pass mill for stainless steel to Guang Han Tian Cheng Stainless in Sichuan Province, China; 4 a 2 Stand Tandem mill for aluminum to Exal in Pilar, Argentina; 4 a 20-High cold rolling mill for stainless steel for POSCO AST in Ansan, South Korea; 4 a 4 Stand Tandem mill for lead alloys to Delkar Corporation in Gyeongbuk, South Korea; 4 a 20-High cold rolling mill for stainless steel to Southwest Stainless Steel in Guanghan, China; 4 a 20-High cold rolling mill for stainless steel to Fuxing Precision Stainless Steel in Hanchuan City, China; 4 a 4 Stand tandem mill for lead alloys to Chongqing Johnson Controls Battery Co in Chongqing, China. Tenova I2S also received several orders for the revamping of: 4 a 2 High cold rolling mill for specialty materials to Elmet Technologies, Covington, Georgia; 4 a 20 High cold rolling mill for stainless steel to Ningxia Wanlong New Material in Ning Xia, China; 4 a 20 High cold rolling mill for stainless steel to Vista Metals in Rhode Island, USA; 4 a 20 High cold rolling mill for copper and copper based alloys to Zhejiang Bada Copper in Zhejiang Proviince, China; 4 a 2 Stand Tandem mill for copper and copper based alloys for the Poongsan Metals Corporation in Ulsan, Korea; 4 a 20-High cold rolling mill for copper and copper alloys for the Chinalco Central China (Daye) Copper in Huangshi, China; 4 a 20-High cold rolling mill for specialty steels and alloys to Laminaries Matthey in La Neuveville, Switzerland; 4 a 20-High cold rolling mill for bonded metals, for Shanghai Sumison Specialty Metals in Shanghai, China. tenova 55

58 Strip Processing Lines Tenova s Strip Processing business unit supplies modern and highly technological processing lines for cold rolled strip (aluminum, carbon, stainless and silicon steel), including electrical and automation systems. The company s specific know-how covers a wide portfolio of lines such as push-pull and continuous pickling lines and acid regeneration plants; tinning, galvanizing and color coating lines; electrocleaning and silicon steel lines. Tenova Strip Processing is also constantly improving its technologies in the continuous annealing line (CASH) for aluminum, consolidating and increasing its market share. The business unit is also leader in the manufacturing of aluminum annealing surface treatment lines for the automotive and aerospace markets. Thanks to its well-established experience, Tenova is able to carry out new tailor-made processing lines and complete revamping on a turnkey basis. STRIP PROCESSING LINES 4 In 2013, Tenova Strip Processing was awarded four new contracts for aluminum projects in Russia related to the aerospace industry, and in China, the USA and Germany for the automotive industry. Aerial view of the 2.5 million tpy Energiron direct reduction plant for Nucor Steel, Alabama, USA. Several projects are in the startup phase or final acceptance stage: 4 aluminum cash line for a confidential client, USA; 4 recoiling and electrolytic cleaning line for Ternium, Mexico; 4 acid regeneration plant for Ternium, Mexico; 4 acid regeneration plant for Hung Li Steel, Taiwan; 4 acid regeneration plant for China Steel Sumikin, Vietnam; 4 thermoflattening and coating line for NLMK, Russia - FAC received; 4 new plant of Mg oxide regeneration in the succinic acid process in Europe - FAC received; 4 zero waste push-pull pickling line and acid regeneration plant at Roofings Co. Ltd, Uganda - FAC received. techint group companies 56

59 Roll Grinders and Automatic Roll Shops Roll grinding machines of the highest quality, performance, reliability and automation levels are designed, built and installed worldwide under the Pomini brand name. Single machines or whole automatic roll shops are supplied to rolling mills for ferrous and non-ferrous flat products, as well as to the paper and aluminum industry and to branches of heavy industry. ROLL GRINDERS In 2013, Tenova Pomini was awarded various prestigious and significant contracts worldwide. 4 Some traditional customers in China, India, South Korea and in other countries confirmed their previous choice of Tenova Pomini grinders: - Baosteel (P.R. China) for the Zhanjiang project, with 11 roll grinders (steel, HSM and CRM); - Nanshan (P.R. China), with 3 roll grinders (aluminum, HSM, CRM) and 1 roll grinder (aluminum, plate mill); - Yieh Phui (P.R. China), with 3 roll grinders and ancillaries (Steel, CRM); - BAOTOU (P.R. China), with 2 roll grinders (steel, CRM) - JSW (India), with 1 roll grinder (steel, CRM); - Posco (South Korea), with 1 roll grinder (stainless steel, CRM); - Novelis (South Korea), with 1 revamping (aluminum, HSM); - SSAB EMEA AB (Sweden), with 1 revamping (steel, CRM). 4 Tenova Pomini was also chosen by new customers in China: - Tangshan, with 4 roll grinders, 1 loader and roll shop ancillaries (steel, CRM); - Zhongwang, with 3 roll grinders and ancillaries (aluminum, plate mill, HSM and CRM). 4 and in other countries: - Eko Swiat (Poland), with 1 roll grinder (aluminum, CRM); - O.A.R.C. (Oman), with 1 roll grinder (aluminum, CRM); - Surabaya (Indonesia), with 1 roll grinder (steel, CRM); - Irga (Italy), with 1 revamping (paper); - Hydro Aluminium Slim (Italy), with 2 revampings (aluminum foil); - Böhler-Uddeholm Strip Steel AB (Sweden), with 1 revamping (steel, CRM). Mining & Minerals industry Engineering and Engineering, Procurement and Construction Management (EPCM) Services Management of the complete project lifecycle from concept to commissioning is provided by Tenova Bateman. The unit is focused on maximizing the success and profitability of a project through state-of-the-art process engineering and design, and leading-edge project management systems. Comprehensive services for new process plants and brownfield upgrades cover a wide range of commodities and are tailored to both large and small projects. Tenova Bateman s engineering and EPCM skills have been proven on some of the most exacting mineral resource projects, in the most difficult of terrains. tenova 57

60 ENGINEERING AND EPCM SERVICES New contract awards in the engineering and EPCM market remain dominated by study work as new capital projects are delayed or on hold. Project highlights included: 4 a reimbursable contract, in joint venture with AMEC, for the EPCM of a uranium metallurgical plant for Swakop Uranium s Husab project in Namibia, which will be the third-largest uranium mine in the world; 4 commissioning of the Unattritioned Mags Material (UMM) plant at the Tronox/Namakwa Sands heavy minerals mine in South Africa; 4 commissioning of Harmony Gold s Kusasalethu elution column plant in South Africa; 4 engineering support for Phase 1 expansions of London Mining s Marampa iron ore project in Sierra Leone; 4 commissioning of two dense-media separation plants for Rhino Minerals Annesley andalusite mine in South Africa; 4 turnkey project, awarded by Tata Steel, to establish an 8 Mtpa crushing and washing plant for a greenfield iron ore project at Khondbond in Orissa, India; 4 major milestone achieved in Russian Platinum s Chernogorsky mining and metallurgical complex project in Russia where Tenova Bateman is the general designer for the basic engineering design phase; 4 overland conveyor system for Utkal Alumina International Limited (UAIL) with execution handled by Tenova TAKRAF. Studies included: 4 feasibility study for brownfield upgrades of London Mining s Marampa iron ore project in Sierra Leone; 4 completion of technical engineering study for Tambao Manganese Project, Burkina Faso; 4 scoping study awarded by Kogi Iron Limited for Agbaja Iron project in Nigeria; 4 definitive feasibility study for Namib Lead and Zinc Mining s North River zinc/lead project in Namibia; 4 definitive feasibility study for Baobab Resources pig iron and ferro-vanadium project in Mozambique s Tete region; 4 definitive feasibility study for Phase 0 and Phase 2 of the West Rand Tailings Retreatment Project, a j-v between Sibanye Gold and Gold One International Limited, South Africa; 4 prefeasibility study awarded by Clifton Resources for Duparquet Gold Project in British Columbia. Open pit mining, underground solutions and bulk handling Tenova is active in the mining and bulk handling sectors through TAKRAF, a key supplier of equipment and systems for open pit mining & underground Tenova Delkor belt filters at Rio Tinto s Hope Downs 4 iron ore project in Pilbara, Australia. solutions and bulk handling, having provided hundreds of complete systems, as well as individual machines, to clients all over the world in all climatic conditions. techint group companies 58

61 OPEN PIT MINING, UNDERGROUND SOLUTIONS AND BULK HANDLING Tenova TAKRAF continued to see good demand for its mining and bulk handling equipment, particularly in the Americas but also, with increased activity in Europe and Asia. Contract awards from the Americas included: 4 Minera Antucoya in Chile, in which Tenova TAKRAF is working with Tenova Bateman Technologies (see following section) to design, supply and construct a copper ore handling/processing system and solvent extraction/ electro-winning plant. Tenova TAKRAF is providing the agglomeration plant, the on-off leach pad and a spent ore handling system; 4 the design and supply of stacker and reclaimer for Vale, Brazil; 4 the design and supply of a continuous ship unloader for SEINFRA at Pecem port, Brazil; 4 the upgrade of four double roll crushers for Shell; the design and supply of two double roll crushers for Canadian Natural Resources Limited (CNRL), Canada; 4 the design and supply of 21 conveyors for the Concentrator 2 Project at the Buena Vista el Cobre Mine in Mexico. Contracts awards from Asia included: 4 Erection of two 1400L bucket wheel excavators for Neyveli Lignite Corporation (NLC); 4 Design and supply of a transport crawler for China Coal Pingshuo Group Corp; 4 Engineering, design, supply and manufacture of a urea bulk handling system for Indorama Eleme Fertilizer and Chemicals in Nigeria. The contract was awarded by TOYO Engineering Corporation of Japan. Contract awards from the Middle East included: 4 Supply of a pipe conveyor and of a radial quadrant shiploader for Takreer s carbon black and delayed coker unit in Abu Dhabi, UAE. Contracts awarded by PHB Weserhutte S.A and by Samsung Engineering respectively; 4 Supply of a stacker, bridge reclaimer and heavy duty double wheel bridge reclaimer for an iron ore mine in the Middle East. Contract awards received from Europe included: 4 Supply of a bucket chain continuous ship unloader for ILVA S.p.A. for its steel plant at the Port of Taranto, Italy; 4 EPC contract awarded by Vattenfall Europe Mining AG to refurbish Tenova TAKRAF conveyor bridges at mining operations in Lusatia/Germany. The conveyor bridges have been in operation for some 40 years at the Nochten and Janschwalde opencast mines. Orders received from Australia included: 4 Supply of two scraper reclaimers for Maules Creek; 4 Design, supply and construction of new stackers to replace current Italimpianti machines at Australia s Port Kembla coal terminal. Tenova TAKRAF Africa s project highlights included: 4 The major greenfield Kusile Power Station Project in South Africa for the national power utility Eskom, has reached an advanced stage with the provision of the terrace, stockyard and limestone handling facilities. Kusile is one of three new state-of-the-art coal-fired power stations that will use the most advanced thermal power generation technology to meet South Africa s rapidly growing power needs; 4 Commissioning of five new bucket elevators and modifications to 15 existing bucket elevators for Kenmare Resources Moma Sands, Mozambique; 4 A repeat order for chain conveyors for Atcom Air Pollution Control, South Africa, was installed at the Xstrata Lion ferrochrome plant; 4 Supply of two granulators for BHP Billiton in South Africa. New contract awards included: 4 Conveyor system for Sasol Mining s Tweedraai expansion project, South Africa; 4 Design and supply of a Rapid Load Out Station (RLOS) for Vale s Moatize Phase 2 iron ore project in Mozambique. The phase 1 RLOS was also supplied by Tenova TAKRAF Africa; 4 A turnkey contract for a boiler emission abatement plant from Impala Platinum Ltd - Refineries in South Africa; 4 Redesign and upgrade of the BATCAT (Bateman Capsule Transport) system for De Beers Venetia Diamond Mine, South Africa; 4 Repeat order for a Redler coal handling system for a boiler coal feed system for RCR Energy Systems, New Zealand; 4 Replacement of two rotary breakers for BHP Billiton in South Africa; 4 Supply of bagfilters for two Pretoria Portland Cement (PPC) Company Limited sites in South Africa. The Tenova TAKRAF Africa client support services had another successful year with contracts driven by a buoyant demand for refurbishment work for, amongst others, rotary breakers, granulators and reclaimers. tenova 59

62 Process technologies and modular plant solutions Tenova supplies process technologies and modular plant solutions through Bateman Technologies, leveraging decades of experience of establishing processing facilities. Advanced hydrometallurgical solutions include solvent extraction, electrowinning and leaching, supported by expertise in complementary processes from sulfuric and phosphoric acid plants, ion exchange circuits, water and wastewater treatment plants through to beneficiation processes for phosphate rock, base and precious metals, iron ore, coal and uranium. Pioneering the concept in the 1960s, Modular Plants offer competitive processing and reduced risk in difficult locations. PROCESS TECHNOLOGIES AND MODULAR PLANT SOLUTIONS Key process technology projects included: 4 Tenova Bateman Technologies is supplying the solvent extraction plant based on proprietary BATEMAN SETTLERTM technology, for a copper solvent extraction-electrowinning plant, to produce 80,000 tpa of fine copper cathodes. The client is Minera Antucoya, part of Antofagasta plc, in Chile; 4 Conceptual scoping study awarded by IGLE Resources for a nickel heap leach-solvent extraction-electrowinning operation at NiWest nickel laterite project in Western Australia; 4 First installation of a Turbulent Technologies system, of which Tenova Bateman Technologies is the exclusive licensee; 4 Bench scale solvent extraction testing on a leach solution from Çaldaǧ Nikel of Turkey, confirming the viability of solvent extraction for the direct recovery of nickel and cobalt. Tenova Pomini automatic cell for cluster mill rolls. Key contracts for the modular plant business included: 4 A 50 tph modular iron ore beneficiation pilot plant using ultra high dense media separation (UHDMS) cyclone technology, for a Tier 1 mining client in South Africa. The performance tests have been successfully completed; 4 Supply of two front end modules for a diamond plant in Zimbabwe; 4 Supply of a 5 tph DMS modular diamond processing plant in a fast track project (nine weeks from order placement), to Russia. techint group companies 60

63 Solid/liquid separation and minerals processing Tenova is an industry specialist in solid/liquid separation and mineral processing applications for the minerals, chemical and industrial markets through Delkor. Offering comminution, flotation, sedimentation, filtration, screening, and gravity separation systems, Tenova Delkor services range from test work, process trade-offs and flowsheet design, to installation, commissioning and aftermarket support. SOLID/LIQUID SEPARATION AND MINERALS PROCESSING Project highlights included: 4 Site installation of 14 Delkor Thickeners at Barrick Chile s Pascua Lama project, which straddles the Chile/ Argentinian border; 4 Delivery of Delkor BQR 1500 flotation machines, together with the supply of Delkor High Rate Thickeners, for Polyus s gold plant at Natalka in the Russian Federation; 4 Commissioning of two Delkor Belt Filters at Hope Downs 4 iron ore project for Rio Tinto, Australia; 4 Delivery of ore tailings thickener to London Mining s Marampa iron ore project in Sierra Leone; 4 Delivery of a Delkor Thickener and flocculant plant for Tata Steel Minerals Canada, for the Direct Shipping Ore (DSO) project; 4 Commissioning of two 44 m Delkor High Rate Thickeners, with bolted design, for AngloGold Ashanti Australia s Tropicana gold project; 4 Commissioning of two Delkor High Rate Thickeners, with self-supported tanks, for Nui Phao Mining in Vietnam. New contract awards included: 4 Delkor High Rate Thickener and flocculant plant for Phu Bia s Ban Houaxyai gold-silver operation in Laos; 4 Delkor Thickener mechanism for Dynatec Madagascar SA s Ambatovy Nickel project in Madagascar; 4 Delkor Clarifier for Swakop Uranium s Husab project in Namibia; m 2 Delkor Belt Filter for Kibali Gold Mine in the Democratic Republic of the Congo; 4 Delkor Thickener, with a self-supported tank, and Delkor Clarifier for ArcelorMittal s Liberia Iron Ore project; 4 Delkor High Rate Thickener, two Delkor Belt Linear Screens and a flocculant plant for BEA Mountain Mining Corporation, part of Aureus Mining Inc., for New Liberty Gold, Liberia; 4 Linear screens for the oils sands industry in Alberta, Canada; Feed Water Tank of the irecovery system installed at Elbe Stahlwerke Feralpi, Germany. tenova 61

64 Pyrometallurgy Tenova offers advanced pyrometallurgy solutions through its South African company Tenova Pyromet, a leading company in the design and supply of high capacity AC and DC furnaces and complete smelting plants for production of ferroalloys, base metals, slag cleaning and refining. Tenova Pyromet also designs and supplies equipment for material handling and pre-treatment, alloy conversion and refining, granulation of metal, matte and slag, furnace off-gas fume collection and treatment, and treatment of hazardous dusts and waste. Tenova Pyromet has several technologies to reduce operating costs, increase production and lower power consumption. PYROMETALLURGY Tenova Pyromet successfully commissioned/completed five key projects: 4 Two 33 MVA ferromanganese/silicomanganese furnaces for SARDA Metals and Alloys (SMAL), India; 4 Replacement of Assmang Chrome Machadodorp Works Furnace No 2 s electrode pressure rings, South Africa; 4 Simcoa Silicon Metal furnace, Australia; 4 Four 16.5 MVA ferrochrome furnaces for Visa Bao s new plant in Orissa, India; 4 The performance certificate for Lonmin s Furnace No 2 in South Africa was signed by the client. New projects awarded included: 4 Equipment supply for a 36 MVA silicon metal furnace for RS Silicon in Bosnia; 4 BCL in Botswana became the first recipient of Tenova Pyromet s new generation AutoFurnTM controllers, based on the client s experience of a previous successful installation of the controller at Freeport McMoran s Miami smelter plant in the USA; 4 Supply of copper cooler technology for the Xstrata Isoconvert process. Study work included: 4 Definitive feasibility study for Ironveld Mining on a DC furnace smelter solution, for production of pig iron and in the longer term, vanadium; 4 Prefeasibility study for Siyanda Resources on a DC furnace focused smelting complex in South Africa, for ferrochrome production; 4 Study for Baobab Resources covering an optimal process solution for a pig iron project in Mozambique. techint group companies 62

65 Factories Tenova produces the core components of its equipment in its own factories. With a global network of facilities in China, France, Germany, India, Italy, Poland, USA and Vietnam, employing nearly 700 skilled technicians and craftsmen, Tenova manufactures high-quality equipment for projects worldwide. Asia Tenova has five different factories in Asia spanning three countries. In China, Tenova Timec factory is based in Tanggu (Tianjin). Main activities are the manufacturing of heavy structural steel components, water cooled and pipe to pipe parts for iron and steel plants, and high-value manufactured goods for strip processing lines. The excellent quality of production is guaranteed under Tenova s worldwide quality assurance program. In Shanghai, Tenova Huisen is focused on multi-purpose heating furnaces for automotive and heat treatment companies. In India Tenova operates through two factories based in the Mumbai area. The factories handle fabrication, machining and equipment assembly for strip processing lines and cold rolling mills. Final assemblies and testing of the majority of equipment are conducted internally to ensure compliance with Tenova quality standards. Tenova Delkor factories, based in the Bangalore area, handle production and quality control of Tenova Delkor liquid/solid separation equipment and key components. Two 33 MVA ferromanganese/ silicomanganese furnaces for SARDA Metals and Alloys (SMAL), installed near Vishakhapatnam, India. tenova 63

66 In Vietnam, the Tenova Envita factory is located in the Nhon Trach industrial block, close to Ho Chi Minh City. It is strategically located in an industrial development area close to some of the major steel producers. Europe In Europe Tenova runs a production network of eight factories. Tenova BMI factory, based in Saint Quentin Fallavier (Lyon), designs and produces, since 1947, vacuum furnaces for the heat treatment industry. It is focused on the development of customized solutions for the treatment of steel, titanium, aluminum and ceramic parts. Elution facility for Harmony s Kusasalethu gold mine near Carletonville, South Africa. Germany counts four Tenova manufacturing facilities. The Tenova TAKRAF factory in Lauchhammer is used for metal prefabrication, steel construction, assembly, wear parts manufacture. The workshop is designed for the fabrication of sophisticated core components of Tenova TAKRAF s equipment, which will be supplied to its sites worldwide. The Tenova Schmetz factory, based in Menden, designs and produces, since more than 65 years, vacuum furnaces for the heat treatment industry. Over the years it has become a top class manufacturer for automotive and aerospace applications. In Dortmund the Tenova IVA factory designs and produces multi-purpose heat treatment equipment and mainly focuses on retort type furnaces and quench furnaces, supplying a wide range of automotive techint group companies 64

67 industry corporations. The Tenova Mahler factory in Plochingen is a world leader in continuous furnaces under protective gas atmosphere, boasting 60-years know-how in the sector. It has the capacity of assembling furnaces for brazing, sintering and other treatment for automotive and tool industry. In Italy, Tenova Pomini is a modern factory based in Castellanza (Varese). Equipped with the most advanced CNC machine tools, the factory is mainly focused on the production of Pomini roll grinders and is able to meet the most demanding delivery schedules and quality requirements. Two more facilities operate in Poland. The Tenova LOI Thermprocess factory in Tarowskie Gòry, Katowice, handles manufacturing and assembly of industrial furnaces and heating systems for heat treatment of metals. Its in-house capabilities and best practices guarantee excellent quality and manufacturing standards. Tenova Riva factory in Swiebodzin offers a range of equipment and services for all needs of modern heat treatment shops. It focuses on furnaces with protective and reactive atmospheres for diverse applications. North America The Tenova I2S production facility, located in Yalesville, Connecticut, produces a full line of cold rolling mills. By combining quality manufacturing capability, a strong engineering foundation and the latest in controls technology, Tenova I2S excels in the technical support and responsive service that its customers demand. Research and Development Technological innovation is the main pillar of Tenova s competitiveness. Tenova is fully committed to R&D to effectively meet the present and future most pressing requirements of the metals and mining industries. Tenova focuses on the fields of end product quality improvement, energy saving, and effective pollution reduction that it considers essential for sustainable development within its client s industries. Quality Tenova is focused on quality and is committed to continuously improving services, in order to meet or exceed the client s expectations, following best practices and standards within the reference industry. Tenova has begun an excellence path involving some companies of the Group, that already have ISO 9001, 14001, and OHSAS certifications with some of the primary certifying bodies such as Moody International Certification Ltd., BVQI, and DNV. tenova 65

68 tecpetrol techint group companies We focus our strategy for growth in America through qualified, committed and highly experienced human resources, continuous technological improvement, the industry s best practices in safety, occupational health and environmental protection, and the constant involvement with the communities near our areas of operation. 66

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70 Tecpetrol 3In the previous pages: In 2013 the concession for the El Tordillo block in Argentina was extended to 2027; the signing ceremony took place by a rig in the block. Tecpetrol is an Argentine oil and gas exploration and production (E&P), and gas transportation company, fully owned by the Techint Group, with operations or interests in Argentina, Venezuela, Bolivia, Ecuador, Mexico, Peru, Colombia and the United States. The company currently employs about 6,000 people counting own employees and contractors, with a permanent staff of nearly 1,000 people. E&P techint group companies Tecpetrol operates 9 blocks in Argentina s Northwest, San Jorge, and Neuquina basins, where it holds shares in long-term concessions. Tecpetrol also operates in the Oriental basin of Ecuador and in the Burgos basin of Mexico, and has a share of the Baripetrol Mixed Enterprise, which operates the Colón block in the Maracaibo basin of western Venezuela. Finally the company operates 3 blocks in south Texas. In Colombia, Tecpetrol is exploring three blocks (CPO-6, CPO-7 and CPO-13) in association with Petronova. After finishing the seismic acquisition, the company has drilled 11 exploratory wells, 3 of wich were successful, as well as 2 successfull apraisal wells. In Peru, Tecpetrol was awarded the 174 Block, close to the Camisea field. The company also holds non-operating interests in E&P, such as a 25% share in the Ramos block in the Northwest Basin in Argentina; a 25% share in the Shushufindi block, one of the most important fields in Ecuador; a 10% share in the Camisea block (Blocks 88 y 56) in the Ucayali Basin in Peru. This large gas and condensate block has significantly increased the company s reserves. Finally, Tecpetrol holds 20% non-operating interests in the Ipati and the Aquío blocks in the Tarija Basin, Bolivia. A discovery of a gas and condensate field was made in Ipati in 2004 and in Aquío in Start-up is scheduled for Tecpetrol s current operated oil and gas production is around 90 thousand barrels of oil equivalent (boe) per day with more than 1,800 productive wells and with plants and facilities for primary and secondary recovery, for oil and gas conditioning and processing, and for power generation. El Tordillo Block The El Tordillo block in the Gulf of San Jorge basin in Argentina, whose concession was recently extended until 2027, stands as one of the most important oil fields operated by Tecpetrol. It produces (together with neighboring blocks La Tapera and Puesto Quiroga) nearly 6.0 million barrels (bbl) of oil and 3.7 billion cubic feet (bcf) of gas per year. Tecpetrol holds a majority share of the block. El Tordillo has currently over 740 wells in production and 200 injection wells. 68

71 Aguaragüe Block Tecpetrol holds a 23% share and is the operator of the Aguaragüe block in northwest Argentina. The production of Aguaragüe is 24 bcf of gas and 0.8 million bbl of oil per year. The concession of Aguaragüe also expires in Other Blocks in Argentina Tecpetrol operates another 7 blocks located in the main basins of Argentina. Annual production from these areas is 1.4 million bbl of oil and 19 bcf of gas. E&P International Operations In Venezuela Baripetrol Mixed Enterprise operates the Colon Unit in the Maracaibo basin, where Tecpetrol holds a 17.5% share. Oil production amounts to more than 1.8 million bbl per year, and gas production amounts to 1.0 bcf per year. In Ecuador the company operates the Bermejo Block, in the Oriental basin, where production doubled since the start-up in 1999, reached 3.1 million bbl of oil per year in 2005, and was 1.2 million bbl per year in A consortium for the Libertador field is led by Tecpetrol (40%) in association with other strategic partners. In the Shushufindi field consortium -led by Schlumberger- Tecpetrol holds a 25% share and participates in the technical and investment decisions. The two fields produce above 80 thousand barrels of oil per day. Tecpetrol also provides of oilfield development services to Petroecuador. Tecpetrol has a 50% participation and is the operator of the Misión block in Mexico, an area of 1,972 km 2 where there are currently more than 145 productive wells with a total output of approximately 38 bcf of natural gas per year and 0.3 million bbl of oil. Tecpetrol is also involved in a pilot project in Chicontepec operating and maintaining a PEMEX field with the purpose of increasing its output. Current production is 2,800 bbl per day of oil and 7,500 million cubic feet a day (Mscfd) of gas. In 2010 Tecpetrol acquired an American company with blocks in south Texas. There are 60 wells that produce 1,300 bbl/day of oil and 14 Mscfd of gas. Gas Transportation Since 1997, Tecpetrol is also an investment company and operator of gas transportation businesses, and has become a successful developer of gas infrastructure projects. The company promotes new initiatives, taking advantage of business opportunities, supporting the role of private investment in the integration of the energy infrastructure of neighboring countries in America. Tecpetrol holds shares in - and jointly operates with leading tecpetrol 69

72 international energy players - strategic energy companies in Argentina, Peru and Mexico. The company holds stakes in Transportadora de Gas del Norte (TGN), Transportadora de Gas del Mercosur (TGM), Litoral Gas in Argentina, Transportadora de gas del Peru (TgP) and Norpower in Mexico (Sistema 3). Tecpetrol also owns the Compañía Operadora de Gas del Amazonas (Coga) for operations of gas and natural gas liquids pipelines in Peru. Aguaragüe block, province of Salta, Argentina. Transportadora de Gas del Norte TGN operates two main pipelines in the northern and western regions of Argentina, connecting three major gas producing basins to the industrial belt running from Córdoba to Buenos Aires, and serving eight out of the nine local gas distribution companies. TGN also provides the link to major exporting gas pipelines: GasAndes, that provides natural gas to central Chile and its capital, Santiago; Norandino, supplying natural gas to the copper mining region in Northern Chile; TGM, exporting gas for power generation in southern Brazil; and Entrerriano, connecting Uruguay. Tecpetrol holds a 27.2% share in Gasinvest, the holding company that owns 56.4% of TGN, and is the co-operator with Total. techint group companies 70

73 Litoral Gas Litoral Gas distributes gas in the Province of Santa Fe and in the northern part of the province of Buenos Aires. It is located at the hub of the TGN system, connecting two major gas producing basins in the country with the largest domestic gas markets. Tecpetrol holds a 27.5% share in Litoral Gas and participates in its management. Transportadora de Gas del Mercosur TGM transports gas to a 600 MW combined cycle power plant in Uruguayana, in southern Brazil. TGM is the owner of the 440 km pipeline that allowed the first export of natural gas from Argentina to Brazil, and TGN is the operator of the pipeline. Tecpetrol holds a 21.8% interest in TGM. Transportadora de gas del Peru y Compañía Operadora de Gas del Amazonas Tecpetrol has recently inked a USD 650 million deal with Grupo Energía de Bogotá to sell its 23.61% interest in the consortium Transportadora de Gas del Perú (TgP) and 100% of Compañía Operadora de Gas del Amazonas (Coga). Despite this, Tecpetrol mantains its commitment and interest with Peru, and prepares to face new projects in energy infrastructure. Sistema 3 In January 2010, through Norpower, Tecpetrol began maintenance services to the Sistema 3 gas pipeline system of Pemex E&P. Sistema 3 is located in the Mexican states of Chiapas, Tabasco and Campeche. The project includes 1,436 Km of pipelines and 58 measuring stations. Power Generation Central Térmica Pesquería Tecpetrol is leading the construction, along with Tenaris and Ternium, of an approx. 850/900 MW combined cycle gas power plant in the Monterrey area (northeast Mexico) with the objective of supplying Techint Group plants throughout the country by The size of the investment is USD 1 billion. tecpetrol 71

74 humanitas techint group companies The mission of Humanitas is the constant improvement of the efficacy of treatment by means of basic and clinical research, innovative medical methods and investments in technology in order to guarantee increasingly higher quality standards of the services delivered. 72

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76 Humanitas 3 In the previous pages: The main building of Istituto Clinico Humanitas in Rozzano, near Milan, Italy. Humanitas was established in 1988 by the Techint Group, jointly with other industrial and financial partners, in order to promote, implement and manage health care initiatives. In particular, Humanitas has built or acquired in Italy a number of health care institutions of high complexity which it manages. Humanitas strategic objective is to build a network of institutions characterized by the quality, efficiency and humaneness of the service provided, as well as by the scientific level and the quality of investments in innovation. Humanitas management model joins economic sustainability with social responsibility and has been used as case study at Harvard University for Health Care courses. It relies on a wide application of advanced integrated information technology systems, and the use of the Internet to facilitate the relationship between the hospitals and both clients and suppliers. The main features of this model are the complete control and open, on the spot analysis of costs; a lowering of average hospital stays or stopovers; the minimization of waiting time; the high level of service, under a Diagnosis Related Group (DRG) payments system. The model also requires a constant interaction between medical staff and managers to ensure high levels of quality and the maintenance of a humane, patient oriented approach in the delivery of health care. Based on its experience, Humanitas supplies management consulting services to both public and private health care concerns. techint group companies 74