May New Rolling Mill. TenarisTamsa Industrial Center.

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1 New Rolling Mill TenarisTamsa Industrial Center May 2011

2 Growing alongside our customers With the start-up of the heat treatment and threading lines, the new plant will produce seamless pipe products to meet the most demanding quality standards in the market. p The rolling mill began production on January t The steel bar leaving the rotary furnace approaches the CTP (Cone Type Piercer). q General view of the PQF (Premium Quality Finishing), the steel bars from the rotary furnace behind approaches the CTP. (Following pages). Tenaris has launched its most ambitious project to-date with 3T, its state-of-the-art seamless pipe plant in Veracruz. The Tamsa mill will be the company s third seamless pipe plant in Mexico, built in answer to the increase in demand from customers both in Mexico and around the world. The new plant incorporates the latest rolling technology and will produce seamless pipe of 2 3/8 up to 7, expanding the product offer and optimizing response times. The third TenarisTamsa seamless pipe plant is being built in an area that extends over more than 200 hectares / 494 acres. The first stage, which demanded an investment of some US$ 850 million, involved the construction of a competitive and state-of-the-art rolling mill as well as premium threading, finishing and heat treatment lines. During the second stage, the direct reduction facility will be built and the present steel shop expanded. Located next to its existing facilities in Veracruz, the new plant will have an output of 450,000 metric tons / year. The new rolling mill began production in January 2011, 25 months after the start of the project. The inspection, tubing and heat treatment lines commenced activity in April, while casing and upsetting lines will enter the testing phase during May. The rolling mill incorporates the best PQF (Premium Quality Finishing) technology available, providing enhanced process controls and guaranteed quality. The project has undoubtedly benefited from the company s operational and technological know-how accumulated over more than 50 years.

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4 Environmentally efficient design This would be the first industrial facility of its kind to be awarded the LEED certification in the New Construction Category. p The production process is developed within sustainable facilities. t Landscaping is taking place around the plant with the plantation of palm trees. q The PQF technology provides enhanced process controls and guaranteed quality. (Following pages). From the outset of construction, all efforts have aimed at ensuring the facility qualifies for the Leadership in Energy and Environmental Design (LEED) certification according to the United States Green Building Council (USGBC) standards. With the award of the LEED certificate, TenarisTamsa 3T would become the first industrial facility of its kind to achieve this level of design efficiency. LEED certification is the recognized standard for measuring building sustainability not only in the United States but around the world. It is designed to promote design and construction practices that increase profitability while reducing the negative environmental impact of buildings and improving occupant health and well-being. As part of the effort made to comply with the LEED standard, construction work at TenarisTamsa has included a number of environmentally-efficient aspects, ranging from the sustainable use of land, water, energy and air to the conservation of natural resources.

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6 Archeological artifacts Work to preserve the archaeological artifacts discovered during construction is continuing in parallel to the start-up schedule. Since July 2009, over 250 vessels and 150 anthropomorphic and zoomorphic figurines have been recovered in the area where the new rolling mill is located. Most of the artifacts were placed there as part of ritualistic ceremonies, and while many have been recovered in one piece, others have been found broken up into shards. Studies of the artifacts have uncovered more detailed information on how these long-lost tribes lived. There is evidence of different kinds of productive activities and customs as well as the remains of a workshop which employed the volcanic glass obsidian as a cutting tool, probably one of the community s principal activities. tp During the last 3 months of 2010, TenarisTamsa displayed 53 original archeological remains in a temporary exhibit called Man and Nature,Three of the artifacts were discovered in the new rolling mill area. The fragility of the clay figurines fashioned by this ancient community made the recovery work all the more challenging and complex. The Instituto Nacional de Antropología e Historia and TenarisTamsa have been working as partners on the excavation project since October q General view of the finishing lines beginning production in May (Following pages).

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8 Location of the new mill km Port 1 Truck entrance 2 Warehouse 3 Premium 4 Ultrasound 5 Mill and finishing lines 6 Staff entrance; lockers and parking lot 7 Services Present Future 7 Rolling mill Rolling mill Steel Shop Tenaris University R&D Administrative Building Sporting Facilities La Palapa Automotive Center Cover and back cover: General view of the machinery inside the new plant, taken on April 21 st, Sucker Rods Threading and Accesories Photographs of Félix Cúneo. Tenaris. All rights reserved. Third english version, May 2011.