VALLOUREC : VALLOUREC : Vallourec maintains its commitment to sustainable development

  VALLOUREC : VALLOUREC : Vallourec maintains its commitment to sustainable
                                 development

                                Press Release



        Vallourec maintains its commitment to sustainable development

                                      

  o-72% accidents with lost time over the last 5 years
  o12%increase in energy efficiency between 2008 and 2012
  o50% of the steel used by the Group coming from recycled scrap metal
  oA pro-active approach to measuring the Group's water footprint
  o€6 million devoted to local communities in Brazil

                                      

Boulogne-Billancourt, 28 March  2013 - With  France's Sustainable  Development 
Week taking place from April 1 to April 7, Vallourec reports on its commitment
to this cause.
In 2011, Vallourec published a  new Sustainable Development Charter that  sets 
the Group's sustainable  development targets, defines  areas for  improvement, 
and reinforces communication with its stakeholders. Designed for the Company's
external partners  as well  as its  employees,  the Charter  is in  line  with 
proposals made by the  French Round Table on  the Environment (le Grenelle  de 
l'Environnement) and new regulations.

The new Charter and its performance indicators



Vallourec's new  Sustainable Development  Charter is  structured around  three 
main areas:

1.Ensuring the sustainability of our business with competitive and
    innovative products.
2.Maintaining sustainable relations with our stakeholders.
3.Protecting our environment and using our resources judiciously.



It also integrates performance indicators and five key goals:



           COMMITMENTS                   INDICATORS          2012      2013
                                                            RESULTS OBJECTIVES
Ensure the safety and protect     TRIR (Total Recordable      7.6      6.5
the health of our employees;     Incidence Rate: number of
offer each employee good working  accidents recorded per
conditions                        million hours worked)
Train and motivate our employees  Results of the "Opinion"     -       62%
through skills development,       survey (employee
recognition of expertise,        satisfaction rate)
promotion of talents and career
development
Satisfy our shareholders over the Assessment by                B        B
long term                         non-financial rating
                                  agencies
Improve the energy efficiency of  kWh/metric ton processed    975      945
our facilities and reduce the
carbon emissions from our
production processes
Respect our environment and       Percentage of waste        90 %      92 %
protect biodiversity by           recycled
preventing all forms of
pollution, decreasing water
consumption, recycling waste and
reducing noise

                            For more information:
http://www.vallourec.com/en/group/sustainable-development/Documents/SDCharter-2011_Vallourec.pdf





2012 Highlights



  o-72% accidents with lost time between 2008 and 2012



Keen  to  continuously  and  permanently  improve  safety  within  the  Group, 
Vallourec extended  in 2011  its ambitious  safety improvement  program for  a 
further three years, based on four  tools: steering committees at every  level 
to infuse the  Group's safety culture,  safety visits at  work stations  (over 
30,000 visits  in 2012),  permanent deployment  of risk  assessment tools  and 
prevention actions, as  well as the  implementation of Continuous  Improvement 
Teams (over 300 in 2012).

In five years, the LTIR (Lost Time Injury Rate: number of accidents with  lost 
time per million hours worked)  decreased by 72%. By the  end of 2012, it  was 
2.60 and  the  TRIR (Total  Recordable  Incidence Rate:  number  of  accidents 
recorded per million hours worked) was at 7.6, surpassing the Group's targets.



  o12%increase in energy efficiency compared to 2008



In 2012, energy consumption by the  total tonnage utilized was 654  kWh/metric 
ton for gas  and 322 kWh/metric  ton for electricity.  Although these  figures 
appear higher than  those from 2008,  the benchmark year  when the  GreenHouse 
project was launched to reduce  the Group's energy consumption, they  actually 
show a big improvement in energy  efficiency, since the proportion of  premium 
products manufactured by Vallourec has  grown significantly and these  require 
more complicated and energy-intensive heat treatment and finishing  processes. 
By equivalent orders and volumes, efficiency has improved by over 12% compared
to 2008.



Vallourec's plant in Düsseldorf-Rath  (Germany) is a  shining example of  this 
increase in energy efficiency. Thanks to the installation of new  regenerative 
burners in its main  furnace in 2012,  the plant has  reduced its natural  gas 
consumption by 30% and carbon dioxide emissions by 8,000 metric tons per year.



  o50% of the steel used by the Group comes from recycled scrap metal



In 2012, 50% of the steel used by  the Group to produce its tubes, whether  it 
was made internally or bought from  steel companies, came from recycled  scrap 
metal, leading to an equivalent reduction in the amount of iron ore extracted.
This figure is as high as 65% if only the steel produced by Vallourec's  steel 
mills is taken into account.



  oA pro-active approach to measuring the Group's water footprint

Water is essential in the industrial production process of Vallourec, which is
why the Group  pays particular attention  to the subject  and has developed  a 
pro-active approach to reducing the quantities of water used. Over the past 10
years, the Group's water withdrawals have  been reduced by 40% per metric  ton 
of tube produced. In 2012 Vallourec decided  to do more by measuring the  full 
impact of  its  activity on  local  water  resources, and  by  targeting  more 
efficiently improvement  actions.  Vallourec has  turned  to Veolia  Water  to 
implement a new measurement  tool: the Water Impact  Index (WIIX) at 7  sites. 
This multi-criteria approach goes further than simply quantifying the  volumes 
of water used,  i.e. quantities  of water  withdrawn and  discharged. It  also 
assesses the level of stress on local water resources, and the overall quality
of the water withdrawn and discharged.



  o€6 million for local communities in Brazil



In Brazil, for  historical, cultural and  regulatory reasons, and  due to  its 
plant being located in the heart of the urbanized district of Barreiro in Belo
Horizonte, Vallourec has been providing local communities, and especially  the 
poor living in these communities, a long-standing structured support  program. 
Particular emphasis is  placed on schooling  and pathways towards  employment, 
encouraging and  funding individual  economic activity,  and participating  in 
various cultural and  sporting events.  In 2012,  €6 million  were devoted  to 
these projects.





ABOUT VALLOUREC



Vallourec is a world leader in premium tubular solutions primarily serving the
energy markets, as well as other industrial applications.



With over 23,000 employees, integrated manufacturing facilities, advanced R&D,
and presence  in  more  than  20 countries,  Vallourec  offers  its  customers 
innovative global solutions to meet the growing energy challenges of the 21^st
century.



Listed on NYSE  Euronext in  Paris (ISIN  code: FR0000120354,  Ticker VK)  and 
eligible for  the Deferred  Settlement System,  Vallourec is  included in  the 
following indices: MSCI World Index, Euronext 100 and CAC 40.



In the United States,  Vallourec has a sponsored  Level 1 American  Depository 
Receipt (ADR) program (ISIN code:  US92023R2094, Ticker: VLOWY). The ratio  of 
Vallourec ADR to ordinary shares is 5:1.



www.vallourec.com





FOR FURTHER INFORMATION, PLEASE CONTACT



Press relations

Caroline Philips

Tel.: 01 41 03 77 50

E-mail: caroline.philips@vallourec.fr



Investor relations

Étienne Bertrand

Tel.: +33 (0)1 49 09 35 58

E-mail: etienne.bertrand@vallourec.fr

280313_PR_Vallourec_Sustainable Development Week (PDF)

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