Tenaris S.A. manufactures and supplies steel pipe products and related services for the energy industry and other industrial applications. The company’s Tubes segment includes the production and sale of both seamless and welded steel tubular products and related services mainly for the oil and gas industry, particularly oil country tubular goods (OCTG) used in drilling operations, and for other industrial applications with production processes that consist in the transformation of steel into tubular products. Products The company’s principal finished products are seamless and welded steel casing and tubing, line pipe and various other mechanical and structural steel pipes for different uses. The company manufactures its steel pipe products in a range of specifications, which vary in diameter, length, thickness, finishing, steel grades, coating, threading and coupling. For most complex applications, including high pressure and high temperature applications, seamless steel pipes are usually specified and, for some standard applications, welded steel pipes can also be used. Casing: Steel casing is used to sustain the walls of oil and gas wells during and after drilling. Tubing: Steel tubing is used to conduct crude oil and natural gas to the surface after drilling has been completed. Line pipe: Steel line pipe is used to transport crude oil and natural gas from wells to refineries, storage tanks and loading and distribution centers. Mechanical and structural pipes: Mechanical and structural pipes are used by general industry for various applications, including the transportation of other forms of gas and liquids under high pressure. Cold-drawn pipe: The cold-drawing process permits the production of pipes with the diameter and wall thickness required for use in boilers, superheaters, condensers, heat exchangers, automobile production and several other industrial applications. Premium joints and couplings: Premium joints and couplings are specially designed connections used to join lengths of steel casing and tubing for use in high temperature or high pressure environments. A significant portion of its steel casing and tubing products are supplied with premium joints and couplings. The company owns a range of premium connections, and following the integration of Hydril’s premium connections business, the company markets its premium connection products under the TenarisHydril brand name. In addition, the company holds licensing rights to manufacture and sell the Atlas Bradford range of premium connections outside the United States. Other Products: The company also manufactures sucker rods used in oil extraction activities, coiled tubing used for oil and gas drilling and well workovers and for subsea pipelines, welded steel pipes for electric conduits used in the construction industry, and industrial equipment of various specifications and diverse applications, including liquid and gas storage equipment. In addition, the company sells raw materials that exceed its internal requirements. Customers The company’s customers include oil and gas companies, as well as engineering companies engaged in constructing oil and gas gathering, transportation, processing and power generation facilities. Strategy The company’s business strategy is to continue expanding operations worldwide and further consolidate its position as a leading global supplier of high-quality tubular products and services to the energy and other industries by: pursuing strategic investment opportunities in order to strengthen presence in local and global markets; expanding comprehensive range of products and developing new high-value products designed to meet the needs of customers operating in increasingly challenging environments; securing an adequate supply of production inputs and reducing the manufacturing costs of core products; and enhancing its offer of technical and pipe management services designed to enable customers to optimize their selection and use of products and reduce their overall operating costs. Research and Development The company spent $106 million for research and development in 2013. Other Investments The company has a significant investment in Ternium, one of the steel producers of the Americas with production facilities in Latin America. The company is a party to a shareholders’ agreement with Techint Holdings S.à r.l., or Techint Holdings, a wholly owned subsidiary of San Faustin S.A. In 2012, the company’s subsidiary, Confab Industrial S.A. acquired 5.0% of the shares with voting rights and 2.5% of the total share capital in Usinas Siderúrgicas de Minas Gerais S.A., which produces flat steel products used in the energy, automotive and other industries. Techgen, S.A. de C.V., is a joint venture company owned 48% by Ternium S.A., 30% by Tecpetrol International S.A. (a wholly-owned subsidiary of San Faustin S.A.) and 22% by the company. Competition The company’s principal competitors in steel pipe markets worldwide are as follows: Vallourec, a Franco-German venture; Nippon Steel & Sumitomo Metal Corporation; TMK, a Russian company; TPCO; Tubos Reunidos S.A. of Spain; Benteler A.G. of Germany; and Voest Alpine AG of Austria. History Tenaris S.A. was founded in 1909.
tenaris sa (TEN:BrsaItaliana)
29 avenue de la Porte-Neuve
Phone: 352 26 478978
Fax: 352 26 478979www.tenaris.com
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