SSI: CSR Report 2009

Corporate Social Responsibility Report 2009 Sahaviriya Steel Industries Public Company Limited

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Corporate Social Responsibility Report 2009

About this Report This report aims to reflect long-upheld practices of sustainable business which are continually developed by Sahaviriya Steel Industries Public Company Limited or SSI. Our way is based upon the concept of pursuing business growth whilst at the same time attaining involvement in social and environmental development - an exemplar in conducting sustainable business that is competitive and socially responsible for the community in a concrete manner and more in line with business environment. Hence, we have issued our first ever Corporate Social Responsibility Report 2009, which is a compilation of information and results of social projects, environmental management performance and success in human resources development in 2009.

The content of the report consists of vision, mission and a myriad of operations supporting the aforementioned concept, which have been adopted as part of business plan and management system in order to achieve our goal in the same direction in addition to measurable results. It also entails corporate governance and performance of safety, environment and occupational health management as well as outcome of development and sustainability-driven projects undertaken by SSI and other companies under SSI Group as well.

This Corporate Social Responsibility Report is available not only in print but also online at the Company’s website: www.ssi-steel.com.

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Corporate Social Responsibility Report 2009

Our Purpose (Vision & Mission) Innovate premium value steel products and services for customer; generate consistent profit and sustainable value for stakeholders.

Values (iFacts) integrity

Fighting spirit

i

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We do

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what we say

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Corporate Social Responsibility Report 2009

Message from the President

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Dear Stakeholders

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Corporate Social Responsibility Report 2009

Success on Environmental Protection We…take responsibility for entire supply chain

A Philosophy of Safety, Occupational Health and Environmental Management

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“Driving business in a sustainable direction can not rest on performance or profit making of the business alone. But we need to pay great attention to safety management at the factory, safety at work, management of employees, occupational health and most importantly, we need a resolute commitment to control and prevent environmental impact from the business which can affect nearby community as well as to efficiency manage and optimize the use of natural resource.

Various certifications of quality assurance granted to the Company can well attest to our dedication to operate business according to good corporate governance which go through extensive process and stages for such standard certification approvals e.g. ISO 14001/TIS 8001/OSHAS18001 as well as the regular inspection performed annually by central agencies.

Keeping our standard to comply with laws requirement reveals our strong intention to responsibly manage environment, occupational health and safety to effectively meet the standards for always.

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Corporate Social Responsibility Report 2009

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A Model of Environmental Management

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Corporate Social Responsibility Report 2009

I am confident and assured that

SSI

is a factory equipping with the occupational health and safety management

that follows law requirements.

Thawatchai Wisamon

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“SSI is a large company located in the Bang Saphan District, Prachuap Khiri Khan Province. SSI is then like a big family with many members. No matter how long this house has been founded and operated business, every one still keeps an eye on this house and always keeps checking on how this very big house is doing and how they treat other members in the family and nearby neighbors. From my own experience of visiting the plant and meeting involved persons who are ready to open for communities, I am well aware and informed of the well-planned environmental managements system as well as occupational health and safety of the plant.

I am confident and assured that SSI is a factory equipping with the occupational health and safety management that follows law requirements as witnessed by several outstanding and excellent industry awards as well as ISO standard certification constantly awarded to the Company.”

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Commitment…to Reduce Emission of CO2 Energy conservation and climate change management

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In 2009, SSI reduced the energy consumption in the production process by

2,752

tons

of carbon dioxide emission.

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Corporate Social Responsibility Report 2009

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Ozone depleting substances Ozone depleting substances (ODS) is a substance adversely affecting the environment.

Thailand has become a signatory party of the Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer which requires the reduction and termination of the use of ODS by 2010.

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>> %-

Corporate Social Responsibility Report 2009

Environmental, Occupational Health and Safety Management

Water resource management

Air quality management

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SSI has rolled out a clear policy that the water for hot rolled steel sheets manufacture will not compete with agricultural sector. To ensure the community that such policy can be materialized, the Company had made an announcement that public water will not be drawn if the water in the weir is lower than

2.2 meters.

>> %.

Corporate Social Responsibility Report 2009

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>> &%

Corporate Social Responsibility Report 2009

Preservation of biodiversity

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Control of impact from feedstock and products transportation

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Djg hjWh^Y^Vgn! EgVX]jVe Edgi 8dbeVcn A^b^iZY!

Two kilometers long of mangrove

forest scenic route: Bang Saphan, the new green tourist spot.

>> &&

Corporate Social Responsibility Report 2009

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>> &'

Corporate Social Responsibility Report 2009

Compliance with rules, regulation and laws

SSI mutually propels

the community forward on a sustainable path.

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“As you can see SSI in Bang Saphan today, not only we have to be careful not to build a wall that separates us from the community, we also have to demolish a fence that may still exist - the obstacles that may make them feel that the factory is not part of the community. We fully understand that despite the correct and right implementation at our own plant, negligence of creating mutual understanding through public participation process will make us miss an opportunity to mutually propel the community forward on a sustainable path. Of course, we will never let that happen.”

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>> &(

Corporate Social Responsibility Report 2009

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>> &)

Corporate Social Responsibility Report 2009

Environmental Performance Index

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>> &*

Corporate Social Responsibility Report 2009

Air emission from Furnace III of Sahaviriya Steel Industries Plc. (October 2009)

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>> &+

Corporate Social Responsibility Report 2009

Air emission from the boiler (September 2009)

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Air emission from the Dust Collector (September 2009)

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Awards on Environment Management 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Certification of ISO 14001 in December 1999 Clean Technology Certificate, 2000 Thailand Energy Award, Outstanding designated factory in energy conservation, 2000 The Prime Minister’s Industry Award for Environmental Management, 2001 EIA Awards, 2001 - the best entrepreneur which complied with the measures defined in the Environmental Impact Assessment (EIA) Certificate of Occupational Health and Safety Management System, TISI 18001 Certificate for Green Factory to commemorate Her Majesty Queen Sirikit on the auspicious occasion of HM the Queen’s 7th Cycle Birthday Anniversary in August 2004 The Prime Minister’s Industry Award for Energy Management, 2006 The Prime Minister’s Industry Award for Environmental Quality Management, 2008 Environmental Governance Certificate, Ministry of Industry, 2009

>> &,

Corporate Social Responsibility Report 2009

Strength to Move Forward >>

Social Responsibility Initiatives

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>> &-

Corporate Social Responsibility Report 2009

Social Responsibility Initiatives Taking Part in Social Stewardship “Creating Benefit…Strengthening Stakeholders.”

“SSI Arsa”

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The value of Art can give back to the society as well.

Teacher Sangkom Thongmee 9^gZXidg d[ =G= Eg^cXZhh H^g^cY]dgc 6gi 8ZciZg

“I admire genuine determination of SSI and social responsibilities Sahaviriya Steels Industry Plc. has for public and communities.

Personally, Kru (teacher) has come to experience a glimpse of SSI social accountability, nevertheless, I have long learned and been informed a multitude of SSI activities and projects aimed at giving back to the society. I, myself have joined the projects to support and promote education held by SSI that focus on educators and students as well as the socially less fortunate for instance an art project which helps inspire imagination in a form of training for educators; a youth art camp; an art contest for scholarship; and Art as Inspiration and Love Sharing Project for the under privileged. The art projects - each of which is held continuously, help spark imagination of participants due to the power of the art in nourishing both physically and mentally in all facets i.e. creativity, emotional intelligence, imagination, intelligence and social intelligence. I hope SSI will be determined and committed to carrying on its mission in giving back to the society eternally.”

>> &.

Corporate Social Responsibility Report 2009

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With your help and donation, if we have chances to give back

to the society, we will do it.

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Wirach Sritulanon

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Strengthening the society and the under privileged.

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â&#x20AC;&#x153;Our foundation is managing a national library for the blind which offers talking book system or voice books produced for helping the blind. With the help from SSI and the organizer of Thailand Iron Man Mini Marathon, we can take good merit from SSI to the blind and also others. Helping us is like allowing us as a middleman to help other and we are happy.

Our children who are in Mattayom level, and some who pursue study abroad and return, cannot find books to read, they have to come to our library. Everything we do is to help each other.

The help and donation from kind hearted people allow us to work and become independent. If we have chances and are able to return to the society, we will do it.â&#x20AC;?

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â&#x20AC;&#x153;SSI Arsaâ&#x20AC;?: employee volunteer program for public well-being in the community.

Both employees and executives volunteered to work for the communities and society which accounted for

8,540 in 2009.

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working hours

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>> '%

Corporate Social Responsibility Report 2009

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Steel development to improve life standard

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Promotion of life quality and environment

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>> '&

Corporate Social Responsibility Report 2009

There are so many community development projects happening in Bang Saphan

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District.

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Kosol Tong-Groi

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Involvement in the Community “Good Life Quality for Sustainable Community”

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“SSI is well known in the community, not just as the manufacturer of hot-rolled steel sheet in coils but also as the benevolent provider who gives back to this community, society and economy. From the beginning up until now, a multitude of projects and support programs were carried out with an emphasis on participation with the community and the needs of people in the community. Areas of the activities incorporate education promotion, career promotion and income generation, promotion of virtue in the community and life quality as well as environment promotion and conservation. I would like to express my sincere thanks on behalf of Bang Saphan Community for the commitment of SSI in duly social responsibility for Bang Saphan District.”

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Development to upgrade community education quality

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>> ''

Corporate Social Responsibility Report 2009

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Corporate Social Responsibility Report 2009

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In 2009, a total of

37projects

include education development, “SSI Arsa”, environment conservation promotion and protection, vocational development, health promotion and well-being, and religious and culture nourishment were undertaken.

>> ')

Corporate Social Responsibility Report 2009

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>> '*

Corporate Social Responsibility Report 2009

Strength to Move Forward >>

Success in Human Resources Program

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>> '+

Corporate Social Responsibility Report 2009

Success in Human Resources Program Attraction, Care and Development Employees...Powers to Success

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Employees >>

Employees are

important persons

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whom we have to take great care of and take full responsibility.

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“Employees are important persons whom we have to take great care of and take full responsibility. Despite various backgrounds and experiences, all of them have united as one

by SSI values. Hence we have carried out every way possible to attract and ensure that our employees work under positive and proper working environment. We equip our employees with necessary skills and competencies so that they are ready to engage more at work and fully devote themselves on a strong foundation of mutual trusts which will result in a sustainable growth of both the Company and employees.”

>> ',

Corporate Social Responsibility Report 2009

Great Concern for Employeesâ&#x20AC;&#x2122; Well-being

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Sahaviriya Steel Industries Public Company Limited (SSI) received the Award for Thailand Best Employer for Labor Relations and Welfare at a national level â&#x20AC;&#x201C; being among only eight companies which received the Award for seven consecutive years since 2003.

>> '-

Corporate Social Responsibility Report 2009

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Corporate Social Responsibility Report 2009

Extensive Internal Communication Program

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>> (%

Corporate Social Responsibility Report 2009

Employees Development

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Corporate Social Responsibility Report 2009

Corporate Information and Overall Business Thai Steel…for a Robust Future of Thailand

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Corporate Social Responsibility Report 2009

Business Ethics The Company must conduct itself responsibly, transparently, honestly, and with competitive competence while treating each of the following groups fairly: &# H]VgZ]daYZgh VcY >ckZhidgh

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Sahaviriya Steel Industries Public Co., Ltd.

Thai Cold Rolled Steel Sheet Public Co., Ltd.

Thai Coated Steel Sheet Co., Ltd.

Prachuap Port Co., Ltd.

West Coast Engineering Co., Ltd.

>> Manufacturer of hot-rolled coils

>> Manufacturer of cold-rolled coils

>> Manufacturer of electro-galvanized coils

>> Provider of deep-sea port

>> Provider of maintenance and engineering services, and engineering design

>> Manufacturer of hot-rolled coils picked and oiled

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Corporate Social Responsibility Report 2009

Design by Plan Grafik Tel. : 0 2237 0080 # 300

More information please contact Public & Community Relations Office Public Affairs and Social Responsibility Division Tel. 0-2238-3063-82, 0-2630-0280-6 Fax 0-2236-8890, 0-2236-8892

Sahaviriya Steel Industries Public Company Limited Head Office : 28/1 Prapawit Building, 2nd-3rd Floor, Surasak Road, Silom, Bangrak, Bangkok 10500 Tel. 0-2238-3063-82, 0-2630-0280-6 Fax 0-2236-8890, 0-2236-8892 www.ssi-steel.com

Factory : 9 Moo 7, Ban Klang Na - Yai Ploy Road, Mae Rumphung, Bang Saphan, Prachuap Khiri Khan 77140 Tel. 0-3269-1403-5, 0-3269-1412-5, 0-3269-1419-20 Fax 0-3269-1416, 0-3269-1421

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