Annual Report 2005 - Tenaris

It was during this period, with the business now
under the command of Roberto Caiuby Vidigal,
that Confab realized that it was time to expand
into new markets. The company thus initiated
what was to become a major participation in the
implantation of the country's petrochemical
industry, projected to make Brazil self-sufficient
in petroleum, as well as in the amplification of
the country's steel industry.
Exports and the stock exchange: new challenges
Confab began to gain global recognition in the
beginning of the 1980's, when in partnership
with Cosipa, it won a tender from All American
Pipeline to build a 2,000 kilometer oil pipeline,
stretching from Texas to California in the United
States. During this decade, the company's commercial
network was extended from Singapore
and Teheran to Houston, Texas.
It was also during the 1980's that senior management
decided that taking the company public
would be essential for its future. 60% of its shares
were offered to ensure growth, diversification and
external funding. The funds raised – and the
confidence of shareholders – provided the fuel for
the company to continue its activities. In addition
to bringing on board a large number of shareholders,
Confab transformed its employees into
true partners by initiating a profit sharing scheme
for all employees meeting their targets.
6. TenarisConfab
Tenaris: global leader
In 1993, as part of the company's growth and
globalization strategies, 30% of Confab's shares
were swapped with Siat, a welded steel pipe manufacturer
belonging to the Techint Organization,
which values and principles had a great deal
in common with Confab's. The company shares
remained listed on the São Paulo Stock Exchange
(Bovespa), with 60% of its capital in the hands
of Brazilian shareholders.
To add value and increase the range of products
on offer to customers, in 1998 Confab formed
a joint venture with the Argentine company Soco-
Ril. The partnership was sealed with the construction
of a center of excellence in pipe coatings
– today known as Socotherm Brasil, also located
in Pindamonhangaba.
In 1999, the Techint Organization acquired a controlling
share in Confab, and Roberto Vidigal was
invited to stay on as president of the company.
In 2001, the Tenaris brand, which originally denoted
a strategic alliance involving eight welded and seamless
steel pipe producers strategically located around
the globe, came into existence. The following year,
the company signed some of the biggest contracts
in its history: the supply of pipes for the Camisea
project in Peru; OCP in Ecuador; Gasyrg in Bolivia
and Carina & Aries in Argentina.
Tenaris is the leading global manufacturer
of seamless steel pipes for the world’s oil and gas
industry and a leading global supplier of seamless
steel pipes for process and power plants and for
industrial and automotive applications. We are
also the leading regional supplier of welded steel
pipes for oil and gas pipelines in South America.
Our customers include most of the world’s major
oil and gas companies as well as a large number
of engineering and industrial companies.