Portrait - Berg Steel Pipe

538 degrees below zeroBitter arctic cold, your breath freezes as soon as it hits the air.Touch the ice-cold steel with your bare hand and it sticks likeglue. It is a battle against time and the elements. Here, no oneis interested in the business visions and mission statements ofa pipe manufacturer. At 38 degrees Celsius below zero, engineershave no time for philosophy.There is only one thing that matters: precision-bevelled, perfectlyparallel pipe ends with equal diameters. So that the nextkilometre can be laid as quickly as the last. Over the years,the EUROPIPE Group and its predecessor companies have producedover 30 million tons of large-diameter pipe, enoughto circle the earth twice. More than anything, this success isdown to pragmatism. We give our customers a concrete commitment:to deliver perfect pipe every time. And do everythingin our power to help them achieve their ends. At literally anyplace on earth.

8Structural StabilityIn 1991, these two steel industry pioneers – AG der DillingerHüttenwerke and Mannesmannröhren-Werke AG – decideto pool their experience and know-how and createEUROPIPE.Our rich heritage in terms of steel technology and manufacturingexpertise plus the dedication and hard work of our peopleenabled us to achieve some very demanding objectives.Today we are the world-market leader in large-diameter pipeproduction for the oil and gas sector and have the most extensivemanufacturing footprint in our industry. With fivemills in Europe, the USA and Brazil, producing annually over3,000 kilometres of large-diameter pipe for pipeline projectsthroughout the world: onshore and offshore, in the arctic ice,the depths of the world’s oceans and in the desert heat.Our ancestors would be proud of us.

9ShareholdersDillinger Hütte Saarstahl AGDillingenMinorityShareholdersSalzgitter AGSalzgitter95.27 % 4.73 %100 %AG der Dillinger HüttenwerkeDillingen50 %Salzgitter Mannesmann GmbHSalzgitter50 %EUROPIPE GmbHMülheim an der Ruhr, GERMANY

11Milestones20072008BSPM spiral pipe mill in Mobile/AL,USA, starts productionTSA spiral pipe mill in Brazilstarts production2006Focus on core business. Sale of all subsidiariesof MÜLHEIM PIPECOATINGS GmbH(formerly EUPEC PipeCoatings GmbH)2005EUROPIPE GmbH moves to Mülheim an der Ruhr2004EUROPIPE takes full ownership of EUPEC PipeCoatings2003Closure of the business unit Jœuf2001BSPC takes full ownership of eb Pipe Coating2000Salzgitter AG acquires Mannesmannröhren-Werke AGfrom Mannesmann AG1996Extension of the manufacturing programmeto include ODs up to 112"19931994Start-up of the 12 m line after transfer from Herne to the Mülheim millEUROPIPE decides to set up the Jœuf business unit for water supply and sewer line pipeShutdown of the Belleville and Herne pipe mills1992Acquisition of Berg Steel Pipe Corp., USA1991Formation of EUROPIPE by USINOR SACILOR and Mannesmann, withlarge-diameter pipe mills at Belleville, Dunkerque, Jœuf, Dillingen, Herne,Mülheim an der Ruhr, and Dillingen pipe mills on stand-byBergrohr Hernewith mills in Herne andDillingenBack to 1912 throughG.KuntzeGTS Industrieswith mills in Belleville, Jœuf,and DunkerqueBack to 1930 throughSacilor, PTE, Vallourec, deWendel and Pont-à-MoussonMannesmannröhren-Werkewith mills in MülheimBack to 1882 through Thyssen-Röhrenwerke, Phoenix-Rheinrohr,Mannesmann-Hoesch, DeutscheRöhrenwerke and Schulz-Knaudt

12Qualityto the power of fourFour partners, one network. Not only have we linked steelmaking, plate rolling, pipe production and coating into oneintegrated process. We also make sure it stays in the family.The steel used by EUROPIPE is produced in the steel plants ofour shareholders, AG der Dillinger Hüttenwerke and SalzgitterAG. This is where the groundwork is laid for the properties demandedof our large-diameter pipes: strength, toughness andweldability under harsh on-site conditions. In a multi-stagethermo-mechanical forming process, high-strength, low-alloysteel with low carbon contents is rolled into plate. The steelplate delivered is always tailored to given project specifications.EUROPIPE, the third power in the network has, as EUROPIPEGroup, a total of five pipe mills, each using the latest technologyto produce high-quality large-diameter pipe: Our Europeanmills are located in Dunkerque / France and in Mülheiman der Ruhr /Germany. The North American mills are basedin Panama City / FL, USA (Berg Steel Pipe Corp. /BSPC) andMobile /AL, USA (Berg Spiral Pipe Corp. /BSPM). The SouthAmerican mill is located in Serra, Espirito Santo/Brazil (TubosSoldados Atlântico / TSA). From these five locations we delivera broad array of products to customers right across the globe.Berg Spiral Pipe Corp.Mobile / ALBerg Steel Pipe Corp.Panama City / FLBerg Europipe Corp.Houston / TXThe fourth cornerstone of this quality network is the coatingexpertise of our subsidiaries MÜLHEIM PIPECOATINGS GmbHin Mülheim an der Ruhr /Germany and eb Pipe Coating Inc.,Panama City /FL, USA. At all our local mills, coating facilitiesare nearby. They carry on a tradition of excellence in corrosionprotection that dates back more than a quarter of a centuryand provide our pipes with all kinds of organic coatings andlinings. Over the years we have developed a wide variety ofcoating systems to ensure our products can withstand thetoughest of tests – onshore or offshore.Tubos Soldados Atlântico Ltda.Serra / BrazilAll these companies work closely together in one integratednetwork to fulfil the commitment we have been giving ourcustomers for years: quality to the power of four.

13Pipe dimensionsEUROPIPE GmbHMülheim an der RuhrGermanyEUROPIPE supplies longitudinallywelded line pipe in diameters rangingfrom 508 to 1,524 mm (20” to60”) and wall thicknesses from 7to 40 mm (0.276” to 1.575”) andin lengths of up to 18.3 metres(60 ft).EUROPIPE France S.A.Dunkerque / FranceTubos Soldados Atlântico supplieshelically welded line pipe indiameters ranging from 406 to1,422 mm (16” to 56”) and wallthicknesses from 5.5 to 16 mm(0.217” to 0.630”) in lengths ofup to 18.3 metres (60 ft).Berg Spiral Pipe supplies helicallywelded line pipe in diameters rangingfrom 610 to 1,422 mm (24”to 56”) and wall thicknesses from8 to 20 mm (0.315” to 0.787”)in lengths of up to 24.4 metres(80 ft).All companies of the EUROPIPEgroup are certified according toISO 9001.Locations of theEUROPIPE GroupHeadquartersManufacturing millSales office

14Capableof more

15The key to success in the large-diameter pipe industry is world-class manufacturing on a quantitative and qualitativelevel. Big in this sense is not only beautiful but the precondition for the ability to service many large projects atthe same time. With a combined capacity of more than 2.5 million metric tons per year, we have by far the largestmanufacturing facilities in our industry.Quantity is obviously nothing without quality. The ability to convert steel plates into perfectly round pipes hundredsof times each day, requires best-in-class quality in every aspect of the manufacturing process. This includes theconstant adjustment of the processes to changing customer requirements. A case in point for this is the newcrimping press in our German mill in Mülheim an der Ruhr. As wall thicknesses of pipes and demands on the pipegeometry are increasing, the requirements for this production step are changing as well. This is why we haveinvested more than E 20 million into a new custom-built machine full of proprietary know-how. It is capable ofbending the longitudinal edges of up to 50 mm thick plates to the exact customer specifications. Leading edgemanufacturing so to speak.

16proof of trustSuperior quality depends first and foremost on having absolutecontrol of the manufacturing process. This is whyhalf of the steps in the EUROPIPE manufacturing valuechainare related to quality testing and inspection.All acquired data is stored and managed by PRODIS, theEUROPIPE production control and information system.With it, every single data point in the life-cycle of a pipe isdocumented. Everything can be traced, from the propertiesof the respective steel plate, the operational specificationsduring production to the storage location on the pipelinebuilding site.The division of work in the quality testing and inspectionarea between man and machine is a fine tuned system andis constantly adjusted to new technological possibilities. Agood example for this is the E-FLORAD filmless radiographysystem. We are proud to be the only large-diameter pipemanufacturer worldwide that conducts all radiographytests with digital technology.The system has enabled a quantum leap in image qualityin testing the ends and welded seams of pipes. All X-raychambers are linked to PRODIS which handles the fully automaticprocess.

19Around the worldtwiceMore than 75% of the world’s natural gas traded today istransported through pipelines, and the trend is rising. Due tothe dynamic economic development of many of parts of theglobe, we witness a constantly changing supply landscape.Growing wealth means higher energy usage and, as oil andgas are rarely found where they are needed, the world needsmore pipelines.In addition, there are large parts of existing pipeline networks,especially in the western hemisphere, which are reaching theend of their useful life and have to be replaced.We are proud to participate in some of the most challengingpipeline projects worldwide. Like the world’s longest offshorepipeline, the Langeled large-diameter pipeline transportsnatural gas from Nyhamna on the west coast of Norway toEasington in England via the offshore platform Sleipner. Thepipeline is 1,200 km long, and over 1 million tons of steel pipewere used in its construction. EUROPIPE has delivered 835 kmfor this project.Qatar’s North Field is the world’s largest connected gas reservoir.The sour gas is transported from the North Field to RasLaffan on the coast via pipelines totalling 220 km in length(140,000 tons of pipe). Due to the corrosive nature of the gas,extremely demanding HIC and SSCC specifications needed tobe fulfilled while casting and rolling the steel, and in the actualpipe manufacture.Very demanding sour gas specifications had to be met for theDoha Urban pipeline as well. Gas from Qatar Petroleum istransported via a 134 km long 36” onshore pipeline in Qatar,to new industries in Doha and Mesaired.The largest order ever for EUROPIPE was awarded by theNord Stream consortium. This pipeline will supply gas fromthe Russian natural gas field Yuzhno-Russkoye – and in thefuture also from the gas fields of the Yamal peninsula andShtokmanovskoye – into the Western European grid.These are just a few of many exciting projects in whichEUROPIPE plays a major role. Since its foundation, the companyhas supplied its customers with perfect products. And thatmeans production and delivery of more than 10 million tons oflarge-diameter pipe – more than 27,500 km. With exceptionalservice and enough flexibility to respond quickly to changingmarket requirements and stay ahead of the field. The earthrotates once a day. The products of EUROPIPE, including itspredecessor companies, go around it twice.

21Giving it 100%And 1 moreSuperior products can win market share, but to make it happenone needs superior service. That is why EUROPIPE provides apackage of services extending far beyond production.Our seasoned logistics teams are pleased to put their experienceat your disposal, both in finding the right shippingsolution as well as in unloading and stacking on site.Our sales specialists deliver ongoing customer support, frominitial enquiry through official tender to order processing. Oneport of call for all your questions means not only effectivecommunications but quick decisions as well.With our intimate knowledge of all national and internationalstandards and codes, we provide expert support forour customers’ project teams every step of the way, planningeverything in advance to avoid surprises in the field.Our research and development team works closely with customersto constantly develop new solutions like innovativesteel for sour service and offshore use.

24Little is so well roundedthat it cannot be madeeven rounderBeing the market leader certainly gives cause for satisfaction.Yet we believe that standing still means falling behind. That iswhy we continuously focus on improving every aspect of ouroffering.One main improvement area is to become even more processorientateddown the line. Continuous process optimisation notonly ensures that we remain agile, flexible and open to newideas; it also lets us improve environmental and health andsafety related concerns. We are ISO 14001 and OHSAS 18001certified, proving how carefully we husband natural resourcesand protect our workforce.A second focus is the adaptation of our products to the changingneeds of the oil and gas industry, such as heavy-wall pipesfor deep-sea usage, products for sour-gas service pipelinesand ultra-high strength steel (up to X100).In close connection to this are improvements in our coremanufacturing facilities. It is another key in sustaining marketleadership. This includes investments into upgrading manufacturingtechnology, as well as a constant quest for finding newand inventive ways to reduce throughput time and increasequality.Last but not least we go to great lengths to sustain and improveour most priced asset, our employees. After all, everybodycan buy the machines needed to make large-diameterpipes, but to be able to do this on a world-class level, oneneeds a workforce that combines people with decades of experienceand graduates from the best technical universities inour field.

26Thanks a millionWithout the hard work and dedication ofthe many stakeholders who work with andfor EUROPIPE, we would not be the leadingplayer in our industry today.First of all we like to thank our many loyalcustomers who, time and again, spur us intoexcellence in long-term personal relationships.Then there are our suppliers, continually strivingfor perfection, for whom merely good isnever good enough.

27And then there are our employees, the peoplewho have developed the processes thatmade us successful and who never tire ofraising the bar. They are all committed to thephilosophy of anticipating customer needsto make our products, processes and serviceseven better.The ability to think ahead – this is the pledgeof top performance with which we approachevery challenge.

EUROPIPE GmbHP.O. Box 10050445405 Mülheim an der RuhrGermanyPilgerstraße 245473 Mülheim an der RuhrGermanyPhone +49 208 976-0Fax +49 208 976-30 00www.europipe.comEP/IMG 03/2009 en 2.000