Environmental Management

TMK’s priority is to transition to the best available technologies with the highest economic and environmental performance.

Reducing the negative impact on the environment in the regions its operation is an essential condition and one of the main priorities of TMK’s strategic development.

The company is implementing a balanced, transparent environmental policy, which is based on the following principles:

  • environmental and social responsibility;
  • effectiveness of environmental activities and their ability to deliver results;
  • openness and willingness to hold a dialogue with stakeholders.

In its operations, TMK follows international initiatives and agreements in the field of environmental protection, as well as fulfills national environmental standards and regulations. In accordance with the principle of sustainable development, our efforts during the year were mainly focused on improving the environmental efficiency of production processes, reducing consumption of natural resources, and minimizing waste disposal.

The uptake of an environmental dimension in the management of business operations enables us to make consistent planning and management decisions in the field of environmental activity during large-scale modernization, technical re-equipment and expansion. Ten of the company’s manufacturing facilities are certified and audited annually for compliance with the international standard Environmental Management System ISO 14001:2004. Continuous improvement of environmental management was once again confirmed by international auditors in 2011.

Environmental Investments — Transition to Best Available Technologies

A priority of TMK’s Strategic Investment Program is the phasing-out of obsolete equipment and the transition to the best available technologies with high economic and environmental performance.

In 2011, 18 environmental investment activities were implemented in the amount of U.S.$ 7.02 million related to the following projects:

  • construction of water-recycling systems;
  • reducing emissions of pollutants;
  • improving the quality of wastewater;
  • reclamation of land.

The total costs of TMK’s environmental activities in 2011 were U.S.$ 36.53 million, which is 15.7% more than in the previous year.

The following improvements were made in 2011:

  • a sound-absorbing device was installed in the electric arc furnace chimney at Seversky Tube Works, which reduced the noise level in the residential area by 5 decibels,
  • A decision was made by the Chief State Sanitary Doctor of the Russian Federation to approve a reduction in the size of the sanitary protection zone around TAGMET for current production, which is objective evidence of sustained reduction of negative impacts by the plant on the environment and the health of the population of Taganrog.

Emissions Control

In order to reduce negative impacts on the air TMK is introducing advanced technology with a high degree of industrial emissions purification. Every year activities in this area are carried out, including overhaul of pollution control equipment to improve the efficiency of gas cleaning, etc.

In general, TMK spent U.S.$ 3.95 million on emissions control, which is 61% more than in 2010.

The main improvements to reduce emissions are:

  • the modernization of gas purification in the electric arc furnace at TMK-RESITA, where dust emissions were reduced by 5%,
  • transition to advanced steelmaking technology — replacement of open-hearth furnaces with an electric arc furnace — will allow the Seversky Tube Works to reduce harmful emissions from steelmaking by a factor of 2.7.

Water Management

TMK’s plants are implementing an integrated approach to solving the problem of water resources, gradually achieving optimization of water consumption, water distribution, use, and sewage.

The main tasks in this area— reducing water consumption and gradually reducing the impact on water bodies — were solved in 2011 due to the development of recycling schemes and increasing the efficiency of existing treatment facilities. The transition to recycling water supply is a prerequisite for the introduction of new production capacities, modernization and reconstruction of production facilities.

Current TMK expenditures on the protection of water bodies in 2011 exceeded the level in 2010 by 14.5% and amounted to U.S.$ 14.6 million.

The following environmental results were achieved at the plants:

  • TAGMET completed construction of the OLIVOTTO water recycling and heat separation systems at the pipe-rolling mill, as well as installation of a steel vacuum degasser. As a result, the amount of water diverted from the Gulf of Taganrog was significantly reduced. Construction of a water-recycling system at the electric arc furnace was begun;
    • as a result of measures to improve the efficiency of wastewater treatment, discharge of iron fell by 32.4% at Seversky Tube Works; suspended material discharge fell by 1.2%;
    • by eliminating leaks and pipeline breaks in the water recycling system at the Volzhsky Pipe Plant, conventionally clean drainage were reduced;
    • a set of measures to improve industrial wastewater treatment at Sinarsky Pipe Plant led to a reduction of pollutants in wastewater. Further work is being done to reduce the allowable discharge;
    • reconstruction of water supply systems at TMK-RESITA was completed in 2011;
    • TMK IPSCO’s plant in Blytheville, Arkansas installed an evaporator for sewage treatment, which reduced the amount of waste by 90%.

    Waste Management

    The Company’s system to manage waste from production aims to implement practical actions to reduce waste generation, recycling, disposal and minimization of placement in the environment.

    To protect the environment from the effects of waste, the following amounts were spent: U.S.$ 6.242 million by the Russian division, U.S.$ 650,000 by the European division, and U.S.$ 649,000 by the American division.

    Despite the growth in production in 2011, TMK facilities produced 5% less waste than in 2010.

    The amount of waste released in 2011 on the sites of TMK facilities fell by 35.8%.

    The Volzhsky Pipe Plant won the Russian national contest “Best Russian Plants: Dynamics, Efficiency, Responsibility 2011” in the category of “Most Environmentally Responsible Business.”

    During the year, work continued to solve the tasks laid out by the company’s Environmental Policy concerning the use of waste products as raw materials for both in-house production and other industries. 93.6% of waste was directed for further use. The use of accumulated waste and waste from current production in the Russian division exceeded the amount of waste formed.

    In 2011, facilities in the Russian division carried out reclamation of disturbed land. The cost of these activities amounted to U.S.$ 1.56 million, which is 2.5 times more than in 2010.

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