Tenaris Steel Plant

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The proposed project is aimed at financing technology upgrades and an increase in production of round billets, as required in the seamless pipe making process, in the Tenaris-owned Donasid steel plant located in Calarasi (South-East Romania). Annual production is expected to increase to 425,000 tons by 2009, from 230,000 tons in 2006, with sales mainly designed to serve the seamless tube producer Silcotub Zalau (North-West Romania), also owned by Tenaris. The project will successfully restructure a formerly idle State-owned company into a viable entity. With several failed privatisations in the heavy manufacturing sector in Romania, and several industrial companies remaining to be privatized, the project could provide significant demonstration effects of replicable behaviour and activities. The project will contribute to the development of the seamless pipes sector in Romania. Donasid’s main client Silcotub produces high end, value added products for the oil & gas, automotive and power industries, a segment not covered by other companies in the country. The project will have a significant economic impact in the region of Calarasi in terms of income, developing skills, and through direct and indirect employment. The client is S.C. Donasid S.A., a subsidiary of Tenaris S.A., a leading global manufacturer of seamless steel pipe products. EBRD will provide a EUR 10 million senior loan. EUR 60 million. B/1 category project. Environmental due diligence confirmed that both industrial operations of Tenaris in Romania, the Donasid steel mill and the Silcotub tube plant, are implementing Environmental Action Plans (EAPs) in order to comply with EU IPPC Directive. The implementation of these EAPs will be covenanted in the Loan Agreement and monitored through annual reports and regular visits. None. Ms. Mihaela Popescu, Executive Assistant Tenaris Romania 1 Louis Blanc Str., 4th Floor, District 1, Bucharest, Romania Phone: +40 21 231 7003 Fax: +40 21 231 7032 Email: mpopescu@tenaris.com