The facilities of Corinth Pipeworks in Thisvi They have a total surface of 497 thousand square metres (49.7 hectares), of which 83 are covered, while their mechanical equipment was supplied by leading foreign manufacturers, such as SMS- MEER and MEG.
Chairman s Message 2 SIDENOR Group 4 CORINTH PIPEWORKS S.A.- Activities 6 Subsidiary Companies 9 Milestones 10 Strategy, Goals and Outlook 12 Facilities - Production Process 14 Product Categories 18 Services 19 Large Projects Execution 20 Human Resources 22 Training 23 Corporate Social Responsibility 23 Quality Assurance 24 Health and Safety 25 Environment 26 Financial Data 28 Management of the Company 32 Board of Directors 32 Corporate Executives 34 Addresses - Communication A64
1. Chairman s Message The successful implementation of CORINTH PIPEWORKS S.A. restructuring programme, completed in 2006, marked its entry into a new dynamic growth phase, already achieving important targets in its individual operations and overall efficiency. More specifically, during fiscal year 2007 the Group consolidated its turnover and improved its profitability and financial structure. At the same time, in regard to its international standing, it maintained its market shares in the traditional markets of Western Europe, the Middle East and North Africa, while it concurrently consolidated its successful presence in the highly demanding N. American market. Regarding production, 2007 marked the onset of the upgrading of the large-diameter helical submerged arc welded (HSAW) steel pipes production unit at the Thisvi plant, with the aim of increasing capacity and of theelectric Resistance Welded/High Frequency Induction production unit, in order to achieve the diversification of the offered product range. Moreover, the Company's joint venture with Russian TMK began its productive and commercial activities in Polevskoy, in July 2007. The Company s reinforced financial position and its successful commercial presence in the markets in which it is active, constitute tangible confirmation of Management's strategic choices. In the current financial year, the international financial environment in which the Company is called upon to participate is significantly more complex, harbouring important opportunities, but also factors calling for special measures. In particular, the fundamental financial indexes of the international energy market display a continuation of intense 2 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
The Company s reinforced financial position and its successful commercial presence in the markets in which it is active, constitute tangible confirmation of Management s strategic choices. new pipes manufacturing activity. However, new developments, such as the rise of the euro against the dollar, the increase in fares and the tendency for concentration in the steel sector are expected to create an especially demanding and competitive business environment. Within this framework and always in the light of international financial conditions, which affect the development of CORINTH PIPEWORK S.A.'s operating activities, Company Management and Executives continue the implementation of its strategic planning into the current year. Dedication to quality, development of new innovative products, continuous effort for streamlining costs and increasing productivity, emphasis on occupational health and safety and respect for the environment, constitute the top priorities for CORINTH PIPEWORKS S.A. Konstantinos G. Bakouris Chairman ANNUAL REPORT DECEMBER 2007 3
2. Member of the SIDENOR Group CORINTH PIPEWORKS is a member of the SIDENOR Group of Companies, which is the largest manufacturer of steel products in Greece and Southeast Europe and constitutes the steel arm of VIOHALCO Group. On 31/12/2007, SIDENOR Group comprised 31 subsidiaries, of which 20 are registered in Greece and 11 are registered abroad: Companies of the SIDENOR Group in Greece CORINTH PIPEWORKS S.A. SOVEL S.A. ERLIKON WIRE PROCESSING A.B.E. EL.K.E.ME. S.A. AEIFOROS S.A. ETAL S.A. PROSAL S.A. VEMET S.A. ETIL S.A. PRAKSYS S.A. DIA.VI.PE.THIV. S.A. VET S.A. VEAT S.A. ARGOS A.E.B.EX. DEPAL S.A. SIDMA STEEL OF MACEDONIA S.A. DIAPEM S.A. V.EPE.M. A.B.E.E METALWORKS OF ATTICA S.A. Companies of the SIDENOR Group abroad STOMANA INDUSTRY S.A. (Bulgaria) ZAO TMK CPW (Russia) DOJRAN STEEL LLCOP (F.Y.R.O.M.) DOMOPLEX LTD (Cyprus) AEIFOROS BULGARIA S.A. (Bulgaria) PROSAL TUBES S.A. (Bulgaria) SIDERAL SH.P.K. (Albania) SIDEROM STEEL SRL (Romania) SIGMA S.A. (Bulgaria) ELMONTE HOLDINGS LIMITED (Cyprus) BOZETTI LTD (Cyprus) TEPRO STEEL EAD HUMBEL CPW AMERICA 4 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
The four main areas of activity of the SIDENOR Group are mini-mills, the pipes, tubes and hollow sections, downstream processing and the sales and distribution sector. CORINTH PIPEWORKS constitutes the Group s strategic business unit active in the piping sector. The leading position of SIDENOR Group is based on its high quality products, continuous innovation, constant investments in technologically advanced equipment and its comprehensive customer support services, while it is further reinforced by its continuously evolving sales and distribution network in Greece and abroad. With plants in Greece, Bulgaria, Russia and F.Y.R.O.M. and a total investment programme of Euro 293 million for the last five years, SIDENOR Group remains steadily focused on maintaining and reinforcing its competitive advantage in production, working towards the continuous upgrading and expansion of its industrial facilities. ANNUAL REPORT DECEMBER 2007 5
3. CORINTH PIPEWORKS S.A.- Activities CORINTH PIPEWORKS S.A. is active in the production of high quality steel pipes, which are used in international energy markets for transmitting oil and natural gas, as well as in the production of hollow sections for the construction sector. The Company was incorporated in 1969, upon the launch of operation of the helical seam production unit in Corinth. It was listed on the Athens Stock Exchange in July 1998, while SIDENOR Group, which is the steel arm of VIOHALCO Group active in the production, processing and trading of steel products, owns a majority participation holding in the Company since July 2004. The production facilities of CORINTH PIPEWORKS are located in the Industrial Area of Thisvi, in the Prefecture of Viotia. They were commissioned in 2002 and are considered one of the most modern and efficient production plants of their kind worldwide. The 6 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
A basic competitive advantage of CORINTH PIPEWORKS in regard to its production and commercial activityis the operation of a three-pier harbour in the Thisvi area, which minimises product delivery times, whilst also ensuring that transportation costs are kept at low levels. production complex has a total surface of 497 thousand square metres (49.7 hectares), of which 83 are covered, while its total annual production capacity, following completion of the new investment in the large diameter helical submerged arc welded (HSAW) production unit, is 775,000 tons. A basic competitive advantage of CORINTH PIPEWORKS in regard to its production and commercial activity is the operation of a three-pier harbour in the Thisvi area, which minimises product delivery times, whilst also ensuring that transportation costs are kept at low levels. Within the framework of the ZAO TMK CPW Joint Venture established between CORINTH PIPEWORKS and TMK, one of the three largest pipe manufacture companies, the production unit in Poveskoy, Russia, began operating in 2007. The plant has a total annual capacity of 200,000 tons and was built in order to cover increased demand in ANNUAL REPORT DECEMBER 2007 7
the Russian and CIS markets. By means of its longestablished presence in international markets, CORINTH PIPEWORKS has developed an especially extensive sales network, while its clients include some of the largest oil and natural gas companies, such as: Chevron, Shell, BP, Total, Public Gas Enterprise (DEPA), National Iranian Gas Company, Enagas, Gaz de France, Transgas, REPSOL YPF, BG, National Grid, Sonatrach, SCOPIraq, Duke Energy, Panhandle Energy, Enbridge, Cheniere Energy, Talisman, PDO, Oman Gas Company. 8 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
CORINTH PIPEWORKS has developed an especially extensive sales network, while its clients include some of the largest oil and natural gas companies. 4. Subsidiary Companies The primary objective of the subsidiaries of CORINTH PIPEWORKS is promoting and providing logistics services to its operational activities, both within as well as beyond Greek borders. In particular, through CPW AMERICA sales are channelled to American markets. Moreover, through its subsidiary HUMBEL LTD, CORINTH PIPEWORKS controls 49% of the joint stock company TMK-CPW, which is headquartered in Russia and the objective of which is the production of medium diameter steel pipes, for supplying the largest oil and natural gas companies in Russia and the Commonwealth of Independent States. DIA.VI.PE.THIV. S.A. manages the Thisvi Industrial Area, wherein CORINTH PIPEWORKS production units are located. In July 2007, the Company sold 30.25% of its holding in its subsidiary DIA.VI.PE.THIV. S.A.; it currently owns a 21.37% holding in said company. Finally, in August 2007, CORINTH PIPEWORKS sold its entire participation in METALLOURGIA KORINTHOU S.A. (99.9% of share capital) to NOVAL S.A. ANNUAL REPORT DECEMBER 2007 9
5. Milestones in the History of the Company The most important dates and events in the history of CORINTH PIPEWORKS are the following: 1969 Incorporation of CORINTH PIPEWORKS and start of operation of the HSAW unit in Corinth. 1972 Beginning of export activity. 1977 Start of operation of the ERW unit in Corinth. 1984 Establishment in the USA market with 90% of production channelled to the Gulf of Mexico (USA). 1988 Penetration in the markets of the former U.S.S.R., North Africa and South America. 1992 Modernisation of the pipe coating units at the Corinth plant. 1993 Certification of the Quality Management System of the Company (ISO 9002). 1998 Listing on the Athens Stock Exchange. 1998 Start of investment program in the Industrial Area of Thisvi for the construction of a new plant and modernisation of the Corinth plant. 10 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
Launch of operations of the Joint Venture ZAO TMK - CPW plant. Objective for supplying the largest oil and natural gas companies in Russia and the Commonwealth of Independent States. 2000 Certification of the Health and Safety Management System of the Company (OHSAS 18001). 2001- Start of operations at Thisvi plant. Certification of the 2002 Environmental Management System (ISO 14001). 2004 Majority participation holding of SIDENOR Group in CORINTH PIPEWORKS S.A. Start of re-structuring program. 2005 Corinth plant closes down. 2006 Restructuring programme concluded. Joint Venture with Russian company TMK for the production of medium diameter steel pipes. 2007 Launch of operations of the Joint Venture ZAO TMK CPW plant. Company shares traded in the Large Cap category in the Athens Stock Exchange. ANNUAL REPORT DECEMBER 2007 11
6. Strategy Goals & Outlook CORINTH PIPEWORKS, having undergone a radical overhaul in the period 2003 2006, began implementing its strategic growth planning in 2007. More specifically, within the year the Company consolidated its commercial presence in the exceedingly demanding, yet also highly important North American market, whilst at the same time gaining a foothold in the Russian market, which presents especially attractive characteristics in terms of size and growth rates. In particular, the first production line of the ZAO TMK - CPW plant was inaugurated within the third quarter of 2007, which also marked the delivery of the first orders to the Joint Venture customers. Within this framework, the Company is called upon to further expand its activities within a complex international business environment, characterised by two divergent tendencies. More specifically, while the fundamental financial indexes of the international energy market indicate a favourable environment, which significantly affects anticipated demand for company products, developments such as the general slow down of the economy, the 12 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
The Company consolidated its commercial presence in the exceedingly demanding, yet also highly important, North American market, whilst at the same time gaining a foothold in the Russian market, which presents especially attractive characteristics in terms of size and growth rates. increase in almost all cost factors, the rise of the euro against the dollar and the concentration tendency in the steel production sector amply counteract those favourable conditions. In line with the above, the main pillars of the Company s strategic business planning have been formulated as follows: Reinforcement and utilisation of the Company s competitive advantages, both regarding productive operation, as well as commercial presence. CORINTH PIPEWORKS, together with parent company SIDENOR, offers the most comprehensive product range, both from the point of view of its features, as well as its quality. At the same time, the geographical distribution of its plants entails an array of advantages, such as a competitive transportation cost, as well as significantly reduced end-product delivery and raw materials receiving times. Commitment to the continuous upgrading of production facilities, with the aim of developing new, high value added products. Development of collaborations for the creation of new products, based on the long-established and close ties that the Company has developed with raw materials suppliers. Further penetration into the Russian market, within the framework of the successful entrance into the local market, with the launch of operation of the ZAO TMK - CPW production unit. Maintenance of flexibility in the production process, in order to meet the diversified needs of its customers internationally. Utilisation of the synergies developed with parent company SIDENOR. ANNUAL REPORT DECEMBER 2007 13
7. Facilities Production Process The main production unit of CORINTH PIPEWORKS is located in the Industrial Area of Thisvi, in the Prefecture of Viotia, while operation of its Joint Venture plant with TMK, located in Polevskoy in Russia, has commenced since July 2007. Thisvi Plant (Greece) The Company s facilities in Thisvi are one of the most modern and efficient production plants of its kind worldwide. They were commissioned in 2002 and investments for upgrading and expanding its production capacity are ongoing. They have a total surface of 497 thousand square metres (49.7 hectares), of which 83 are covered, while their mechanical equipment were supplied by leading foreign manufacturers, such as SMS-MEER and MEG. Five production units operate at the plant, which include two pipe production units, two units for coating and one unit for lining. High productivity and flexibility in the production process are among the main competitive advantages of the plant, allowing it to meet its customers' diversified requirements. Another advantage of CORINTH PIPEWORKS is its exclusive use of the port facilities of the Thisvi Industrial Area, which are located 2 km from the plant. Since 2004, the said port operates based on the International Ship and Port Facility Security Code (ISPS code) and is equipped with the necessary pier and harbour equipment such as cranes, fork-lift trucks and other special lifting equipment. The main advantages the harbour s operation offers the Company are a significant competitive advantage in 14 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
The Company s facilities in Thisvi are one of the most modern and efficient production plants of its kind worldwide. They were commissioned in 2002 and investments for upgrading and expanding its production capacity are ongoing. terms of transportation cost and speed of delivery of raw materials and final products. In the first quarter of 2007, the Company began implementing an investment worth Euro 4 million in the large diameter helical submerged arc welded (HSAW) steel pipes production unit, with the target of increasing production capacity by 25%. Upon completion of the investment within the first quarter of 2008, the said unit of the plant will be in the position to produce 375,000 tons annually, meeting the increased demand manifested for oil and natural gas line pipes of high technical requirements. Furthermore, the upgrade of the Electric Resistance Welded / High Frequency Induction (ERW/HFI) production unit from 24 to 26 began at the end of the first quarter of 2007. Upon its completion within the third quarter of 2008, CORINTH PIPEWORKS will offer the most extensive range of related products worldwide (external diameter up to 26'' and API steel in grades up to X80). ANNUAL REPORT DECEMBER 2007 15
Polevskoy Plant (Russia) The first production unit of CORINTH PIPEWORKS beyond Greek borders was established in 2007 in Russia, within the framework of its Joint Venture with TMK, which is the largest pipe manufacturer in Russia and one of the three leading manufacturers internationally. The plant is located in the town of Polevskoy in the Seversky region. It produces line electric resistance welded pipes (ERW) from its facilities located at a production unit of STW (Seversky Tube Works), a subsidiary of TMK. Its equipment is designed for the production of pipes measuring 168-530 mm in diameter, 4.8-12.7 mm in wall thickness and 18 m in length, as well as hollow sections (following completion of the relevant investment), in accordance with International Standards of quality. The production process began in July 2007 and the nominal annual production capacity is 200,000 tons. Thisvi Plant Production Process The steel pipes used in the energy industry are manufactured according to four alternative production processes, depending on the application, as well as the technical requirements of each project. More specifically: 1. Seamless Pipes Used at oil or gas wells 2. UOE Pipes Used for off-shore pipelines 3. ERW Pipes Medium diameter pipes for the transmission of oil and gas 4. HSAW Pipes Large diameter pipes for the transmission of oil and gas At its Thisvi plant, CORINTH PIPEWORKS produces ERW and HSAW pipes, the production process of which is described below: 1) ERW/HFI Unit (Electric Resistance Welded / High Frequency Induction) In the electric resistance welded/high frequency induction method (ERW/HFI), the raw material is steel coil of high quality (API Hot Rolled Coil). The ends to be welded are mechanically pressed together, while the required welding temperature is provided by the resistance heating of the edges from the electrical current flowing through them. The production capacity of the ERW/HFI unit is 400,000 tons 16 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
annually, while the diameter of the said pipes is from 8 5/8 up to 24. The large diameter hollow sections (from 180x180 up to 500x500 and 600x400), widely used in metal constructions, are also produced in the same unit,. 2) HSAW Unit (Helical Submerged Arc Welded) This unit produces steel pipes of large diameter (26-100 ), while the raw material is also high quality steel coil (API HRC). The welding is achieved with the joining of the edges, which are heated with one or more electrical arcs that are formed between one or more bare metal electrodes and the edges to be joined. Following completion of the relative investment, within the third quarter of 2008, the annual production capacity of the unit amounts to 375,000 tons,. 3) External Coating Units Depending on the technical requirements of the project, as determined by the environment in which the pipeline will operate (e.g. extreme weather conditions), as well as the content of corrosive substances in the oil or gas transmitted, the pipes may require anticorrosive protection. The latter is achieved with external and/or internal coating of the pipes, a process carried out by CORINTH PIPEWORKS in the following three units: TCP 40 Unit External coating of the pipes takes place in the said division with a triple layer of PE (polyethylene) or PP (polypropylene) or with FBE (epoxy paint) of one or more layers. TCP 40 can coat pipes of external diameter up to 40. TCP 100 Unit In this unit, external coating with the abovementioned materials is also carried out; it can process pipes of external diameter up to 100. The total capacity of the TCP 40 and TCP 100 units is approximately 6.3 million square meters per year. Lining Unit - TLP 56 The internal coating of the pipe with epoxy material takes place in the TLP 56 unit. It can accept pipes of external diameter of up to 56, while its annual capacity is approximately 2 million square meters. ANNUAL REPORT DECEMBER 2007 17
8. Product Categories 1. Line Pipes Line pipes are used internationally for the transmission of natural gas and oil, where the main prerequisite for their suitability is the strict adherence to safety specifications. Moreover, steel pipes are also used for transmitting water, the main feature of this application being the high sanitary requirements in order to ensure the safety of the drinking water. CORINTH PIPEWORKS produces ERW/HFI or HSAW pipes in accordance with International Standards (API 5L, EN 10208, ISO 3183) or specific customer requirements. Line pipes are produced in grades up to X80. 2. Casing pipes Casing pipes are used for extracting oil and natural gas. These are high frequency induction welded (HFIW) casings that are manufactured in accordance with International standards (API 5 CT, ISO 11960) or customers specific requirements, in grades H 40, J 55, K 55 and N 80. 3. Hollow Sections Hollow sections are widely used in the construction sector and especially in metal constructions. They may be round, square or rectangular, in lengths tailored to customer requirements. They are 18 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
CORINTH PIPEWORKS produces ERW/HFI or HSAW steel pipes for the transmission of oil and gas, in accordance with International Standards (API 5L, EN 10208, ISO 3138) or specific customer requirements. manufactured in accordance with the European standard EN 10219 and are produced in grades S 275 and S 355. Hollow sections are traded under the trademark SD and, combined with SIDENOR s product range, which includes hollow sections of smaller dimensions, constitute the widest range of hollow sections in Europe. 4. Services Aside from executing complete projects for the supply of steel pipes of high technical specifications (pipe production, internal / external coating, transportation to the jobsite) the Company also offers a series of services to its customers, such as: Internal and external coating of pipes produced by other pipe manufacturers, without the required production facilities or expertise. Storage of pipes. Procurement of pipes or assignment of pipe coating, outside the product range of CORINTH PIPEWORKS, to approved subcontractors, within the framework of large projects for the provision of integrated solutions. Combined transportation, including vessel loading, sea transportation, liner out and road haulage. ANNUAL REPORT DECEMBER 2007 19
9. Large Projects Execution ENTITY / PROJECT COUNTRY PROJECT OBJECTIVE YEAR 1) ERW/HFI Large Projects THE PROCUREMENT & LOGISTICS DIVISION OF THE PRODUCTION UNION AZNEFT OF THE SOCAR Azerbaijan Natural Gas 2007 DUBAI ELECTRICITY & United Arab WATER AUTHORITY Emirates Natural Gas 2007 GRTGAZ France Natural Gas 2007 SAIPEM FRANCE HASDRUBAL PROJECT Tunisia Natural Gas 2007 BG TUNISIA HASDRUBAL PROJECT Tunisia Natural Gas 2007 SAIPEM PORTUGAL MAFUMEIRA NORTE DEVELOPMENT PROJECT Angola Natural Gas 2007 ETABLISSEMENTS MAUREL ET PROM Gabon Natural Gas 2007 UMW OILFIELD INTERNATIONAL TRADING Indonesia Natural Gas 2006 Petrofac Development Oman Oman Natural Gas 2006 Egyptian Natural Gas Co Egypt Natural Gas 2006 ThyssenKrupp Iraq Oil 2006 SALZGITTER-MANNESMAN U.S.A. Oil 2005 Valentine Maritime / National Iranian Oil Company Iran Natural Gas 2005 IIOC Iran Natural Gas 2005 20 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
The fundamental financial indexes of the international energy market are expected to create an especially tempting business environment for steel pipes. ENTITY / PROJECT COUNTRY PROJECT OBJECTIVE YEAR Bechtel, Gasco, OGD III United Arab Emirates Natural Gas 2005 West Africa Gas Pipeline Project (Chevron Texaco) Ghana Natural Gas 2005 Talisman Tweedsmuir Project United Kingdom Natural Gas 2005 Wintershall Holland Natural Gas 2004 BG Allseas, Atlantic Cromatry United Kingdom Natural Gas 2004 SAIPEM / NIOOC S. Sirri, Iran Natural Gas 2004 AMEC United Kingdom Natural Gas 2004 Shell, SALYM Russia Oil 2004 Gaz de France France Natural Gas 2003 PDO Oman Natural Gas 2003 2) HSAW Large Projects Spectra Energy U.S.A. Natural Gas 2007 Energy Transfer U.S.A. Oil 2007 GRTGAZ France Natural Gas 2007 Enbridge U.S.A. Natural Gas 2006 PANHANDLE U.S.A. Natural Gas 2006 ENAGAS S.A. Spain Natural Gas 2006 SONATRACH, Medgaz GZ4 Algeria Natural Gas 2006 Davidson Pipe Supply US Navy U.S.A. Beams / Foundations 2005 D.E.P.A. Greece Natural Gas 2005 MLP Chile Natural Gas 2005 National Iranian Gas Company Iran Natural Gas 2004 Trafigura Ghana Oil 2004 Enron, Transwestern U.S.A. Natural Gas 2004 ANNUAL REPORT DECEMBER 2007 21
10. Human Resources The strength of CORINTH PIPEWORKS resides in its human resources. The Company recognises that its activities and growth, as well as the quality of its products and services, are based on the calibre and performance of its personnel. Therefore, it ensures that the executives and employees in all functions are selected in such a way as to reinforce the goals of the Company with their expertise, knowledge and skills. Pursuing the values of the Company for high quality products and services through the harmonious collaboration of all divisions in practice, CORINTH PIPEWORKS ensures working conditions that offer every employee the following: In-depth knowledge of his/her line of work, Fair and equitable treatment by the Company and other employees, Recognition and rewarding of his/her performance, Ensuring health and safety at work Training on issues of health, safety and the environment and Opportunities to develop skills and knowledge. CORINTH PIPEWORKS scouts for people who are results-oriented, talented, endowed with a team spirit and characterised by strategy and innovation, who firmly aspire to high goals and share the vision and values of the Company. 22 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
Each year its employees participate in training, specialisation and informative seminars focused on new technologies and improvement of their skills, occupational safety and workplace accident prevention, as well as environmental safety. Training CORINTH PIPEWORKS encourages life-long learning and education of its personnel, both within the framework of their work, as well as for their broader development and progress. Each year its employees participate in training, specialisation and informative seminars focused on new technologies and improvement of their skills, occupational safety and workplace accident prevention, as well as environmental safety. These seminars are organised internally or externally by various independent educational institutions. 63 training seminars were organised in 2007, with the participation of 476 employees, corresponding to 93% of total human resources. 5,129 training man-hours were carried out, corresponding to 10 hours of training for every employee. 11. Corporate Social Responsibility CORINTH PIPEWORKS recognises that its leading position in the sector creates commitments for actions that will spur progress and improve working conditions, as well as contributing to the local community, culture and the natural environment. The responsibility of the Company towards its employees, associates and the local community wherein it operates, is a nonnegotiable value. At CORINTH PIPEWORKS, reinforcement of safety in the workplace, respect towards the integrity and personality of its employees, as well as the safeguarding and conservation of natural ANNUAL REPORT DECEMBER 2007 23
resources, constitute a commitment for all and are equally important goals for the operation of the Company as ensuring the high quality of our products. Basic Principles Reinforcement of prevention in relation to health, safety and the environment, through employee training. Respect for the environment. Evaluation of Company performance in the sectors of health, safety and the environment and commitment for continuous improvement, with the goal of minimising negative impact. Investment in the development of local communities, keeping negative impacts at low levels and encouraging their cultural attributes. Application of the best business practices at each workplace for equal opportunities and fair evaluation. Quality Assurance The Company recognises that its competitiveness and viability are based on the provision of quality products and services that will reinforce and promote its position in the market. The Company s presence in large projects in Greece and abroad is proof of its reliability. This fact represents a motive for further investments in the sector of quality management and assurance of end-products. Within this framework, it has developed and applies a quality management system, at all Company facilities, in accordance with Standards ISO 9001, API Q1, or other equivalent standards. 24 CORINTH PIPEWORKS S.A. PIPE INDUSTRY AND REAL ESTATE
The goal of CORINTH PIPEWORKS is ensuring technological investments, human resources and the production process are in line with the needs of its customers. The following plan of action is followed in order to achieve the above goals: Meeting qualitative and quantitative requirements, as well as delivery times. Streamlining of costs and optimisation of the Company s operations. Assurance of an effective and two-way information flow in quality and efficiency issues, with the employees, shareholders, customers, suppliers and contractors. Health and Safety The progress and development of CORINTH PIPEWORKS is interconnected with the assurance of a work environment that complies with all health and safety conditions. The provision of a working environment that corresponds to contemporary safety requirements is a commitment that it conscientiously undertakes. The Health and Safety Management System applied by CORINTH PIPEWORKS is certified in accordance with the International Standard OHSAS 18001. The Company is committed to: Providing necessary resources human, technological and financial for the monitoring and continuous improvement of the ANNUAL REPORT DECEMBER 2007 25