Celsa Group - Environmental Statement 2010

Celsa Manufacturing Environmental Statement Steel Recycling

2010

Contents 1. Message from the General Manager 2. Introduction 4. Our products 6. Environmental profile 8. Management systems 9. Environmental policy and management 10. Responsible sourcing 12. Significant environmental aspects 14. Environmental objectives and targets 15. Emissions and legal compliance 17. Environmental performance indicators 24. Transport Impacts 25. Biodiversity, Community and stakeholder engagement 27. Health, safety and employee engagement 28. Environmental statement verification

Environmental Statement 2010 Celsa Manufacturing

Message from the General Manager

‘our commitment to continuous environmental improvement’ All of our activities here in Cardiff are operated in accordance with externally certified, internationally recognized, management systems for Environmental, Health & Safety and Quality control. As part of our commitment to continuous environmental improvement, we have now registered CELSA UK under the European Eco Management & Audit Scheme (EMAS). This EMAS Environmental Statement is the first that our UK business has produced and it is addressed to members of the public, stakeholders and other interested parties.

The Statement’s aim is to provide information on our environmental performance and achievements during the period 2006 – 2009, and our plans for the future. CELSA will produce an annual Environmental Statement from this point onwards.

The business has faced a tremendous challenge as a result of the recent economic downturn, but we have risen to the challenge whilst maintaining a focus on our Environmental, Health and Safety programmes and policies, where we have seen continuing safety improvements and substantial reductions in the environmental impact of our business activities in Cardiff.

CELSA began operating here in Cardiff in 2003 and since that time we have developed the business significantly.

In particular, we opened a new state of the art melt shop in 2006, representing a £90 million investment. We have also made significant investments in our rolling mills, with the introduction of new rolling mill stands at our Section Mill and, responding to market demand, we have installed new Spooler equipment at our Rod and Bar Mill. As well as improving production efficiency, these investments have helped us to reduce the environmental impact of the business whilst at the

same time making a safer place to work for our employees.

All of our products are made by recycling end of use scrap iron and steel, using the Electric Arc Furnace (EAF) process. Steel produced in this way consumes only a third of the energy and emits only one sixth of the CO2 when compared with other steelmaking processes1. Furthermore, typically, 95% of the waste arisings from the processes are useful by-products and are either recycled or reused and the process produces relatively little true waste.

Business growth has to be integrated with environmentally sustainable decisions and practices so it is right to look at our business performance through economic, social and environmental lenses and to seek synergies between these facets as we develop and grow the business.

The use of modern and best available techniques, employing and nurturing the right people, and continually improving our processes will enable us to achieve ambitious environmental performance targets for our business and our continued development in this field is not only my personal wish, but our strategic goal for an environmentally responsible business.

Luis Sanz Villares General Manager Appointed November 2010

1. World steel data www.worldsteel.org

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Environmental Statement 2010 Celsa Manufacturing

Introduction EMAS This document has been prepared by CELSA Manufacturing UK Ltd in accordance with the requirements of the Eco Management & Audit Scheme (EMAS) as set out in European Council Regulation 761/01. EMAS is a voluntary scheme designed to recognize and reward those organizations that go beyond minimum legal compliance and continuously improve their environmental performance.

It is a requirement of the scheme that participating organizations regularly produce a public Environmental Statement that reports the organization’s environmental performance clearly and accurately. The accuracy and reliability of the information in this voluntary publication must be checked and certified by an independent environmental verifier.

This document represents the Environmental Statement of CELSA’s environmental attributes and environmental

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performance for the period 2006 to 2009. The independent verifier’s statement is provided at the rear of this document.

Eco-Reinforcement & BES 6001 As part of CELSA’s contributon to sustainable construction practices and sustainable development objectives, CELSA’s products are accredited to the Eco-Reinforcement Responsible Sourcing Standard (Issue 2, Eco- Reinforcement Ltd 2009).

This Environmental Statement has also been written in accordance with the higher level requirements of the Standard to which Celsa became certified in November 2009.

Although Stakeholder and local community reporting does not form part of the compulsory elements of the Eco-Reinforcement Standard, by publishing this EMAS Environmental Statement, we are also able to meet the higher performance criteria defined in The Standard and further demonstrate our

commitment to continuous improvement.

We are also currently seeking accreditation for our nonreinforcing products to the Eco-Reinforcement parent standard, BES 6001, the BRE Environmental & Sustainability Standard for the Responsible Sourcing of Construction Products (Issue 2, BRE Global Ltd 2009). This statement will again help us demonstrate compliance with the higher levels of this standard.

Celsa UK Becoming part of the Celsa Group in 2003, CELSA UK is the largest producer of steel reinforcement in the United Kingdom and one of the largest producers of other long steel products. Our facilities at Cardiff comprise a new state of the art melt shop – built on site in 2006 – and two production facilities: one for rolling reinforcing products and wire rod, the other for rolling merchant bar and light sections. Our new melt shop has enabled us to both increase production efficiency and

capacity whilst at the same time significantly reducing our emissions and associated environmental impacts.

We produce and deliver over 1 million tonnes of finished product annually, mostly for the UK and Irish markets, but more recently due to the economic downturn we have been exporting into mainland Europe and beyond. Our logistics department utilise a mix of rail, sea and road transportation depending on customer location and transport network availability.

As part of Celsa UK’s commitment to the reduction of transportation impacts, we have targets to increase our use of more sustainable modes of transport such as rail freight.

We employ about 480 staff as well as several hundred sub-contractors in South Wales and see our business as an important supporter and member of the local community.

Environmental Statement 2010 Celsa Manufacturing

Celsa Group CELSA was founded in Barcelona in 1967 as a small reinforcement bar re-roller.

The CELSA GROUP™ under the leadership of Francisco Rubiralta, has since become a well recognised brand amongst the top 30 steelproducing companies in the World and one of the most diversified European long products producer.

Our companies employ over 8000 people across Europe, operating from 7 steel plants and numerous fabrication units. We have a common aspiration to continually improve our business and to focus on our growth in quality and innovative production activities emanating from our basic principles of respect towards people, the environment and society.

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CELSA has a diverse range of steel production and processing operations strategically positioned across Europe to both maximize our competitive spread and to reduce our transportation impacts.

1. Celsa Barcelona, Barcelona, Spain

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2. Celsa Nervacero, Vizcoya, Spain 3. Celsa Global Steel Wire, Santander, Spain 4. Celsa Atlantic, A Coruña, Spain 5. Celsa France, Bayonne, France 6. Celsa UK, Cardiff, Wales 7. Celsa Armeringsstål, Mo i Rana, Norway 8. Celsa Huta, Ostrowiec, Poland 4

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5 2

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Environmental Statement 2010 Celsa Manufacturing

Environmental profile

Electric Arc Furnace Steel The Process Steel Scrap

Coke

Scrap Bay

Scrap Charge Basket

One tonne of steel that is made from recycled scrap metal saves 1.350 tonnes of Iron ore, 450kg of coal and 20kg of limestone compared to primary steel manufacture from iron ore. Additionally, emissions to air and water are reduced by approximately 80%1.

During the making of EAF steel, lime is added to collect the impurities from the

Lime Oxygen Natural Gas Carbon Electricity

Ferro Alloys Argon Electricity

Natural Gas

Electric Arc Furnace

Ladle Furnace

Billet Caster

Billets

EAF Dust

Slag Handling

Millscale

Zinc

Aggregate Material

Reuse in Ferro Alloys

molten steel. A by-product is formed by this process called ‘slag’, which is then processed by CELSA and supplied for use as a secondary aggregate.

All of our steel products are manufactured via the Electric Arc Furnace (EAF) production process and are made from about 98% ferrous scrap metal, with additions of lime, carbon and

ferro alloy materials to control the chemistry.

Mill scale is also a byproduct of the steel making and the hot rolling processes. This too is collected by CELSA and sold to the Ferroalloy and cement industry for reuse.

Steel is almost 100% recyclable and can be recycled indefinitely without losing its quality.

1. CELSA Armeringsstål AS Mo I Rana Environmental Statement 2009 in accordance with EMAS regulations 6

Natural Gas Electricity

Rolling Mills

Dust generated during the EAF steel making process from the melting of scrap is captured and collected via an efficient bag house filtration system. This dust is then sent to specialist metal recovery companies who extract recoverable precious minerals from it, most notably zinc.

Environmental Statement 2010 Celsa Manufacturing

Environmental profile

Raw Materials Efficiency CELSA’s manufacturing operations are effectively a materials recycling process, and a highly efficient one at that. The principal feedstock is steel scrap which is consumed in the process to make new steel, but there is a need to provide certain additives to the recipe to achieve the right quality of new steel. This process is about 95% efficient with the only wastes being furnace flue dust, slag and millscale, all of which in themselves are materials that have other beneficial uses.

The raw materials data for the plant are summarised in the chart below.

1OO

%RECYCLED

1. Materials efficiency Scrap

Raw materials

Production

2. Melt-shop production

Tonnes

Tonnes

1,400,000

1,400,000

1,200,000

1,200,000

1,000,000

1,000,000

800,000

800,000

600,000

600,000

400,000

400,000

200,0000

200,000 2007

2008

2009

0

2006

2007

2008

2009

Recycled steel’s contribution towards sustainability Sustainable development is based on the commitment to improve the quality of life for society today and tomorrow.

For the companies operating under the CELSA GROUP™ brand it means taking into account the environmental, social and economic consequences of our strategic decisions in our day to day tasks.

Steel is one of the most recyclable and recycled materials in the world. It can be recycled continuously without losing its properties and, given its magnetic properties, it can be efficiently and easily recovered for recycling from mixed waste streams.

There are currently two technologies for producing steel: that used in blast furnace plants which utilise iron ore to create new steel,

and that used in electric furnaces which recycles steel scrap metal into new products.

Steel is one of the few completely recyclable construction materials in common usage. It is also relatively cost-effective to produce via the EAF process and phenomenally versatile.

Since iron is the fourth most abundant element in the earth’s crust, it is only natural that it should have come to play such a significant role in our daily lives. In fact it is so fundamental to all manufacturing processes and used in so many diverse applications that it is commonly said in the industry that “Everything we use in everyday life is either made from steel or using steel”

Virtually all manufacturing activities rely on steel for their plant, infrastructure and in some cases processes and as a raw material.

It helps to shelter us, feed us and lighten our working and leisure hours. Without steel, science and technology would not have advanced our understanding of space, our planet, its oceans and weather systems.

Steel has not only helped to improve the quality of life we enjoy, it has helped us to understand our environment and the changes that are taking place in it through innovative design solutions to complex construction problems.

Steel’s contribution to environmentally sustainable living comes from the fact that this ubiquitous and

essential construction and engineering material can be remelted and used again and again without diminishing its versatility or quality and strength. The recycling of scrap metal has been standard practice since the earliest days of the industrial revolution and in the case of steel there is a thriving multi-million tonne export industry in recyclable steel.

Some of the facets of sustainable production and consumption have been well established norms in our industry for a long time. But others are newer, driven by a more holistic way of looking at economic development.

The steel industry embraces progress in this area and CELSA is a key contributor to those initiatives.

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Environmental Statement 2010 Celsa Manufacturing

Management systems Quality Management System (QMS) CELSA is committed to providing its customers with a diverse range of high quality steel products.

Through our customer focused approach we aim to develop our product portfolio to meet the dynamic needs of the market, whilst ensuring that the highest quality standards are maintained through improved internal controls and quality assurance.

Each product and process is subject to stringent quality control to ensure that products conform to British and European Standards through CARES approval and CE marking.

CELSA’s Quality Management System is certified to ISO9001:2008 and is designed to deliver the policy objectives set out in CELSA’s Quality Policy below.

Health & Safety Management System (HSMS) CELSA is committed to ensuring the highest standards of Health, Safety and welfare for its employees. Fundamental to this commitment is the establishment of a Safety Management System, externally certified as meeting the requirements of OHSAS 18001 that ensures continuous improvement.

Training is a vital element of safety in the workplace, and

002

Quality Policy

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Health & Safety Policy

procedures ensure that everyone in the company from the plant operators, to the General Manager, is aware of their responsibilities.

Accountability is ensured for the Safe Systems of Work operated by the company by placing the primary responsibility for health and safety, with line management.

Environmental Statement 2010 Celsa Manufacturing

Environmental policy and management Environmental Management System (EMS) The steel manufacturing facilities at Cardiff have operated under a formal Environmental Management System (EMS) since 2004 and leading on from Celsa’s acquisition of the facilities in 2003, Environmental Management has been an integral component of the continuous growth and improvement strategy of the business. Improvement in environmental performance was one of the key factors in the decision to close down

Environmental Policy

the original Tremorfa melt shop and replace it with a state-of-the-art melting facility, the first new steel manufacturing investment in the UK in over 30 years.

CELSA’s Environmental Management System is certified to ISO14001:2004 and is designed to deliver the policy objectives set out in CELSA’s Environmental Policy.

Environmental Management & Audit System (EMAS) EMAS – the Eco-Management and Audit Scheme, is a voluntary initiative designed to improve companies’ environmental performance.

It was initially established

by European Regulation 1836/93, although this has been replaced by Council Regulation 1221/2009.

Its’ aim is to recognise and reward those organisations that go beyond minimum legal compliance and continuously improve their environmental performance.

In addition, it is a requirement of the scheme that participating organisations regularly produce a public environmental statement that reports on their environmental performance. It is this voluntary publication of environmental information, whose accuracy and reliability has been independently checked by an environmental verifier, that gives EMAS and those organisations that participate enhanced credibility and recognition.

Casting of new steel.

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Environmental Statement 2010 Celsa Manufacturing

Responsible sourcing Sourcing

Responsible sourcing is an ethos of supply chain management and product stewardship, and encompasses the social, economic and environmental dimensions of sustainability.

In 2007 a consortium of UK reinforcing steel manufacturers including Celsa Steel UK, Celsa UK’s commercial arm, first approached the Building Research Establishment [BRE] to help them address issues of sustainability in the reinforcement supply chain

through a standard called Eco-Reinforcement.

At the same time, in response to the UK Government Strategy for Sustainable Construction, BRE were tasked with developing a standard for the responsible sourcing of construction products. The EcoReinforcement consortium was active during the stakeholder engagement phase of BRE’s standard, later to be known as BES 6001.

‘I am delighted to see this Welsh-based company leading the way in forging a new sustainable economy for the 21st century.’

Ieuan Wyn Jones Minister for the Economy and Transport Following the publication of BES 6001, the reinforcement producers, in collaboration with key industry stakeholders, became the first industry to produce a sector specific responsible sourcing standard compliant with the requirements of BES 6001. This independent standard and third party certification scheme, namely Eco-Reinforcement, was published in May 2009. Both BES 6001 and EcoReinforcement allow designers to gain BREEAM, Code for Sustainable Homes and CEEQUAL credits through specification of materials supplied by certified companies.

Responsible Sourcing Policy

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In November 2009, Celsa UK became the first steel manufacturer to be certified to a recognised responsible sourcing standard, EcoReinforcement, achieving a pass rating.

The then Managing Director of Celsa UK, Francesc Rubiralta, responded to this great news by saying “For many years Celsa UK, and the Celsa Group as a whole, has been committed to the sustainable manufacture of steel reinforcement products.

More recently we have identified clear sustainability objectives and focused on achieving them through a process of whole organisational involvement.

The hard work and commitment of everyone involved has resulted in our certification to the EcoReinforcement Scheme for Reinforcing Steel products, making us the first Steel Mill in the world to be certified to a recognised Responsible Sourcing Scheme. This achievement marks the beginning of a long journey of continuous improvement for us and our supply chain.”

Environmental Statement 2010 Celsa Manufacturing

Francesc Rubiralta (centre) receiving the Eco-Reinforcement certificate on behalf of the Celsa UK, with Derek Hughes of BRE (left) and Deputy First Minister Ieuan Wyn Jones AM.

On Wednesday 26th May 2010, Francesc Rubiralta, received on behalf of the company, our ‘EcoReinforcement’ certificate

by Building Research Establishment (BRE) Responsible Sourcing Manager Derek Hughes, and Ieuan Wyn Jones AM, Deputy First Minister for Wales.

During the presentation Ieuan Wyn Jones who is Minister for the Economy and Transport. said:

“Steelmaking in the 21st Century is a modern, technology based business – and is providing the backbone for a range of advanced industries to propel Wales out of recession. I am delighted to see this Welsh-based company leading the way in forging a new sustainable economy for the 21st century.”

BES 6001 Following the success of our Eco-Reinforcement certification, CELSA have made the commitment to seek accreditation for our non-reinforcing products to the Eco-Reinforcement parent standard, BES 6001.

It is our aim to achieve certification before the end of 2010.

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Environmental Statement 2010 Celsa Manufacturing

Responsible Significant environmental Sourcing aspects CELSA recognises that, like any manufacturing business, its activities can have both direct and indirect impacts upon the environment and in some cases these impacts have the potential to be significant if not properly managed.

CELSA has carefully evaluated through an Initial Environmental Review during the implementation of its ISO14001 Management System (and continues to evaluate), the aspects of its business activities that could have such environmental impacts. These are summarized here.

Use of Raw Materials The production of over 1,000,000 tpa. of steel necessitates that large volumes of raw materials are used in the process, such as Ferrous scrap, Mineral additions such as ferro-alloys and lime, together with production consumables like refractories and electrodes.

The use of these materials is carefully managed to ensure that they are sourced taking account of their environmental impact and used efficiently to avoid waste.

Use of Energy The use of energy in the form of Electricity, Natural Gas and carbon additions is significant and is central to the process of recycling steel.

We are careful to ensure that our processes are efficient so as to minimize the use of energy and to avoid waste.

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Use of Water The production process of converting ferrous scrap into new steel and the hot rolling of that new steel produces significant heat that needs to be removed. This is achieved by the use of water evaporation in cooling towers. This is an unavoidable loss but we work hard to minimise the use of water to ensure that we exceed the standards laid down for our processes, by harvesting as much rainwater as possible.

Emissions to Air During the process of recycling steel scrap into new steel, there are large quantities of dust laden fume generated. These fumes are captured and filtered to remove as much dust as possible but some particles will escape to air. Also because of the combustion of natural gas in our processes there are the inevitable products of combustion released to air such as SOx, NOx, and CO. Emissions to Water We operate closed circuit cooling water systems, which require the use of chemical treatment to prevent corrosion, stop the formation of legionella and allow the removal of sludge. From time to time we have to drain the systems down and when this happens there is loss of water to the sewer system or to controlled waters which is kept to a minimum.

Production of CO2 The on site production of CO2 is significant and comes from the combustion of carbon bearing sources such as Natural Gas, coke and carbon. We also have to consider the CO2 that is created from the generation of the electricity that we use in our processes.

Use of Oils and Greases As with most mechanical processes we have to use lubricants and hydraulic oils.

As these are mostly hydrocarbon based we try to minimise their use to avoid the depletion of natural resources, and to avoid the disposal impact of hazardous waste.

Generation of Waste Whilst we generate large volumes of waste, both hazardous and nonhazardous, we currently recycle or reuse over 95% of the wastes that we generate.

Transportation Our raw materials and our finished products require transport either by road or by rail. We are constantly working on ways to minimise the impact of transport by using rail wherever possible.

Impact of Noise Our processes are that of heavy industry and inevitably will generate some noise. We are continuously working to reduce the impact of noise in our neighborhoods.

Environmental Statement 2010 Celsa Manufacturing

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Environmental Statement 2010 Celsa Manufacturing

Environmental objectives and targets CELSA UK has identified all of its potentially significant environmental aspects and set in place Objectives and Targets designed to deliver continual improvement in the management of these aspects. CELSA’s governance of environmental issues goes beyond compliance with regulatory conditions and the firm’s commitment to EMAS is evidence of our strive to operate our business in an environmentally responsible manner. This means setting targets that are ambitious but achievable. For those aspects that are deemed to be the most environmentally significant (emissions to air, land and water and consumption of energy) we have set out below the key targets that the businesses are seeking to achieve during 2010.

• To reduce the use of commercial water – we have set reduction targets for the Steelmaking plant of 5% and at the Section Mill of 6% Unfortunately the target is not being met for the Steelmaking plant due to significant plant failures during Q1. The Sections mill has greatly exceeded its target and is currently seeing a reduction in excess of 30%

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• To reduce effluent discharges – we have set reduction targets for the Sections Mill of 14%. This target has been achieved and we are seeing reductions greater than 40%.

• To reduce hazardous waste – we have set reduction targets for the Steelmaking Plant and the Rod and Bar Mill of 5%. Good progress has been made in both areas with reductions of greater than 50% being seen.

• To reduce electricity consumption – we have set reduction targets for the Steelmaking Plant and the Rod and Bar Mill of 5%.

Unfortunately the targeted reductions at both the Steelmaking plant and the Rod and Bar Mill have not materialised, mainly due to significant plant failures experienced in the steelmaking plant in Q1, and the downturn in the market for the Rod and Bar Mill has meant that the efficiency of the process has been affected.

• To reduce oil consumption – we have set reduction targets for the Rod and Bar Mill of 10%, and at the Sections mill of 8%.

Progress has been made at the Rod and Bar Mill and savings of 10% are being seen. At the Section Mill the savings are more significant and are greater than 20%.

The following objectives and targets are proposed for 2011: • New Melt Shop: – Reduce General Waste by 5% – Reduce Water Consumption by 5% – Reduce Noise Complaints – Reduce Fugitive Emission Events – Reduce total Energy (Gas & Elec) by 3% – Reduce CO Emission Spikes at the start of the Melt • Logistics: – Increase delivery of Scrap by Rail by 5% – Increase delivery of Finished Product by Rail 5% • Rod & Bar Mill: – Reduce General Waste by 5% – Reduce Hazardous Waste by 5% – Reduce Water Consumption by 5% – Reduce Energy Consumption (Gas & Elec) by 5% – Reduce Oil Consumption by 5% • Section Mill: – Reduce General and Hazardous Waste by 5% – Reduce Commercial water consumption by 5% – Reduce Domestic water consumption by 6% – Reduce Effluent discharge by 5% – Reduce Hydraulic Fluid Consumption by 4% Note – where a % reduction is stated this will be measured against the 2010 years performance.

Environmental Statement 2010 Celsa Manufacturing

Emissions and legal compliance CELSA UK recognises that its business has a potentially large environmental footprint that could impact upon environmental quality if not properly managed, hence the requirement for the plants to be permitted under the UK Environmental Permitting regime. CELSA monitors compliance against its emission limit values and discharge consents in accordance with these permit requirements.

CELSA has the following environmental permits: • Rod and Bar Mill: – Environmental Permit (EPR/BV0759IC) – Groundwater abstraction licence (21/57/25/0048) • Section Mill: – Environmental Permit (BV0767) – Trade effluent Discharge Consent (TE147F) • New Melt Shop: – Environmental Permit (TP3639BH).

– Trade effluent Discharge Consent (TE147G) • Mineral Site: – Environmental Permit (EPR/WP3699FQ) – Groundwater abstraction licence (21/57/25/78).

Environmental performance data relating to CELSA’s Environmental Permits are reported annually to the Environment Agency.

Information on the data that the Environment Agency holds can be found at the Environment Agency’s web site at www.environmentagency.gov.uk.

Whilst CELSA has not had any significant environmental incidents there have been a small number of Schedule 1 incidents which, in accordance with the Environmental Permits require notification to the Environment Agency. These events have been limited to fugitive releases of dust from the Melt Shop, breaches of permitted limits for carbon

monoxide and particulates, and for small quantities of oil released to the dock at the Rod and Bar Mill. CELSA in all cases has been proactive in identifying the cause of such incidents and for investigating and implementing corrective measures.

State-of-the-art fume cleaning at Celsa’s melting facility.

For those aspects of CELSA’s operations that represent the greatest potential for negative environmental interaction (emissions to air, land and water and energy consumption), the table on the following page shows typical levels of these emissions and discharges relative to our permitted limits.

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Environmental Statement 2010 Celsa Manufacturing

Emissions and legal compliance Typical Emmissions Steelmaking

Emissions to Air

Units

Process Limit

2007

2008

2009

Particulates CO NOx SOx Dioxins VOC

mg/m3 mg/m3 mg/m3 mg/m3 ng/m3 mg/m3

10 100 25 25 0.3 20

3.34 55.6 8.5 14.1 0.15 0.6

1.09 43.4 20.2 16.4 0.23 15.9

2.62 51.5 24.8 17.4 0.113 2.6

mg/l mg/l mg/l no units

30 5 5 6 to 10

3 5 0.068 8.7

27 4 0.12 8.7

11 4 0.08 8.6

Units

Process Limit

2007

2008

2009

mg/m3 mg/m3

400 100

243 4.5

217 3.1

209 6.6

Units

Process Limit

2007

2008

2009

mg/m3 mg/m3

400 100

295 8.7

311 0.8

276.5 5.1

mg/l mg/l no units mg/l mg/l mg/l mg/l mg/l

80 5 6 to 9 0.1 10 0.2 0.2 2

54.58 1.12 7.53 0.1 0.17 0.001 0.04 0.02

53.58 2.36 7.47 0.04 1.26 0.0027 0.06 0.03

52.6 1.96 7.4 0.02 2.29 0.00024 0.06 0.01

Emissions to Sewer Suspended solids Oils and greases Iron compounds PH Sections Mill

Emissions to Air NOx SOx

Rod and Bar Mill

Emissions to Air NOx SOx Emissions to Water Suspended solids Oils and greases PH Cl Fe Cr Ni Zn

Note – the process averages indicated are derived from either the annual report or the quarterly report averages made to the EA as required in the permits to operate.

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Further and more detailed technical information on the reports made to the EA is available on the EA Website as part of the Pollution Inventory which is publicly available by looking at the ‘What’s in my Backyard’ section on the EA Website.

Environmental Statement 2010 Celsa Manufacturing

Environmental performance indicators Energy efficiency The efficient use of energy is at the heart of the business strategy and is under continuous review. The opening of our new state of the art Melt Shop has seen a significant reduction in

energy use per tonne of billet produced, and the investment in our rolling mills has given us further improvements in energy efficiency. 16.4% of electricity supplied to the plant comes from renewable sources.

1. Energy usage Rod & Bar Mill products: KWh/tonne Rod & Bar Mill

Melt-shop

Despite the recent worldwide economic downturn we have continued to make reductions through these plants but our Rod and Bar Mill energy performance suffered in 2009 as a result of the reinforcement market that it serves,

2. Energy usage Section Mill products: KWh/tonne Section Mill

Melt-shop

having great difficulties.

The reason for this is that in order to meet the dynamic demands of our customers, more stoppages were required to change sizes.

3. Melt-shop energy consumption Electricity

KWh/tonne

KWh/tonne

MW/h

1,400

1,400

700,000

1,200

1,200

600,000

1,000

1,000

500,000

800

800

400,000

600

600

300,000

400

400

200,000

200

200

100,000

0

2006

2007

2008

2009

4. Rod & Bar Mill energy consumption Electricity

Natural gas

0

Electricity

MW/h

MW/h 140,000

300,000

120,000

250,000

100,000

200,000

80,000

150,000

60,000

100,000

40,000

50,000

20,000 2006

2007

2008

2009

2007

2008

2009

0

2006

2007

2008

2009

5. Section Mill energy consumption

350,000

0

2006

Natural gas

0

2006

Natural gas

2007

2008

2009

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Environmental Statement 2010 Celsa Manufacturing

Environmental performance indicators Atmospheric Emissions CELSA recognizes that its processes have the potential for significant releases of atmospheric emissions, and it is an aspect of the business that CELSA monitors and controls very carefully.

Potentially significant emissions are regulated via the sites Environmental Permits and measured and monitored to ensure that they do not exceed the maximum permitted emission limit values specified in the

Permits in accordance with prevailing legislation. The Environmental Permits were granted and are rigorously enforced by the Environment Agency Wales.

The total annual air emissions for NO2, SOx, Carbon Monoxide, Total Particulates (PM10) and CO from 2006 are summarised in the graphs below: 1. Melt-shop air emissions SOx

CO

Particulates

2. Rod & Bar Mill air emissions NO2

Kg per year

CO

Particulates

SOx

Kg per year

Kg per year

700,000

3,500

7,000

600,000

3,000

6,000

500,000

2,500

5,000

400,000

2,000

4,000

300,000

1,500

3,000

200,000

1,000

2,000

100,000

500

1,000

0

2006

2007

2008

2009

4. Emissions of PM10 per tonne of Steel – Melt-shop PM10 PM10(g) per tonne

0

2006

2007

2008

2009

5. Rod & Bar Mill NO2 air emissions

0

NO2

NO2

Kg per year

Kg per year

140,000

140,000

60

120,000

120,000

50

100,000

100,000

40

80,000

80,000

30

60,000

60,000

20

40,000

40,000

10

20,000

20,000

2006

2007

2008

2009

0

2006

2007

2008

2009

CO

2006

Particulates

2007

2008

2009

6. Section Mill NO2 air emissions

70

0

18

SOx

3. Section Mill air emissions

0

2006

2007

2008

2009

Environmental Statement 2010 Celsa Manufacturing

Environmental performance indicators CO2 Emissions CO2 is produced as a direct result of energy usage, together with the carbon sources input to the steelmaking process. The primary sources of CO2 are the use of electricity, natural

gas and the carbon bearing materials used for steelmaking.

Emissions of CO2 are determined by a combination of the EU-ETS verified reporting data for the Melt Shop carbon mass balance,

1. Emissions: Kg CO2 / tonne of steel – Section Mill products Section Mill

2. Emissions: Kg CO2 / tonne of steel – Rod & Bar Mill products

Melt-shop

Rod & Bar Mill

Kg CO2 / tonne

700

600

600

500

500

400

400

300

300

200

200

100

100 2006

Melt-shop

Kg CO2 / tonne

700

0

together with the UK CCLA CO2 standard emission factors. The indirect emission of CO2 from the use of electricity is taken account of and included in the data shown.

2007

2008

0

2009

2006

2007

2008

2009

3. Total CO2 (All processes) Total CO2

Production

Tonnes CO2

Tonnes steel produced

430,000

2,100,000

420,000

2,000,000 1,900,000

410,000

1,800,000

400,000

1,700,000

390,000

1,600,000

380,000

1,500,000

370,000 360,000

1,400,000 2006

2007

2008

2009

1,300,000

19

Environmental Statement 2010 Celsa Manufacturing

Environmental performance Performance indicators Indicators Water Usage & Emissions CELSA recognises water as a precious resource and the manner in which it is consumed and treated can impact directly on the natural environment. CELSA takes its responsibility regarding water management very seriously and has a number of systems in place to ensure that the use and consumption of water is controlled and minimised.

Water is used in the plants primarily for cooling purposes both in the making of steel and the re-rolling of it. All of our cooling systems are closed loop circulatory systems which minimise water usage, with the main losses being evaporation. We also harvest water extensively by collecting rainwater from the building roofs to supplement the use of treated raw water from the

1. Annual water consumption: total m3 by Production unit Melt-shop Rod & Bar Mill Section Mill

Total water usage (m3)

total m

city water supplies. CELSA typically expects to be able to provide between 10 and 20% of its total water demand from this harvested rainwater. Precise figures cannot be provided as the contribution from rainwater is determined by the incidence and duration of rainfall events which are of course highly variable.

2. Annual water consumption: m3/tonne by Production unit Melt-shop

Rod & Bar Mill

Section Mill

In order to prevent legionella it is necessary to treat the water we use with biocides, as well as corrosion inhibitors and flocculants to aid in the removal of solids from the water. Stringent limits placed on the quality of the water that we release from the systems and in order to meet these requirements we undertake regular monitoring of the effluent streams.

3. Melt-shop wastewater quality suspended solids & oils Suspended solids

m /tonne

1,400,000

1.40

3,500

1,200,000

1.20

3,000

1,000,000

1.00

2,500

800,000

0.80

2,000

600,000

0.60

1,500

400,000

0.40

1,000

200,000

0.20

500

0

3

2006

2007

2008

2009

4. Rod & Bar Mill wastewater quality – suspended solids Suspended solids

0.00

2006

2007

2008

2009

5. Section mill wastewater quality – suspended solids & oils Suspended solids

Grams discharged per year (average)

Free Oil

Grams discharged per year (average)

0.00

2009

pH

Grams discharged per year (average) 14

4,000

3,000

12

2,500

10

2,500

2,000

8

2,000

1,500

6

1,000

4

500

2

1,500

2008

Iron compounds

3,500

3,000.

2007

6. Melt-shop wastewater quality – iron compunds and pH

4,500

3,500

Oils and greases

Grams discharged per year (average)

3

1,000 500 0.00

2007

2008

2009

0

2007

2008

2009

0

2007

2008

Note: pH measured in pH units

20

2009

Environmental Statement 2010 Celsa Manufacturing

7. Rod & Bar Mill wastewater quality Oils and greases Total metals

Chloride pH

8. Section Mill wastewater quality – total metals & pH Total metals

Grams discharged per year (average)

9

160

8

140

7

120

6

100

5

80

4

60

3

40

2

20

1 2007

2008

pH

Grams discharged per year (average)

180

0

Cooled water recycling at Celsa’s melt shop.

2009

Note: pH measured in pH units

0

2007

2008

2009

Note: pH measured in pH units

9. Melt-shop wastewater discharged Cubic metres

10. Rod & Bar Mill wastewater discharged Cubic metres

11. Section Mill wastewater discharged Cubic metres

140,000

70,000

120,000

60,000

100,000

50,000

80,000

40,000

50,000

60,000

30,000

40,000

40,000

20,000

20,000

10,000

0.00

2007

2008

2009

0.00

90,000 80,000 70,000 60,000

30,000 20,000 10,000 2006

2007

2008

2009

0.00

2006

2007

2008

2009

21

Environmental Statement 2010 Celsa Manufacturing

Environmental performance Performance indicators Indicators Waste Management The waste generated in our processes is a focus for reduction by the operational management teams. Of the total waste that we generate at least 95% of it is either recovered or reused and the remaining 5% that is sent to landfill or liquid waste disposal is subject to reduction targets.

The principal routine waste streams that are generated by the business are: 95% By-products Steel Slag – Reused as a secondary aggregate Mill Scale – Reused in the ferroalloy and cement industry EAF Dust – Recovery of zinc and other metals 5% Waste Oily solids – Sent to hazardous landfill Oily liquids – Sent to disposal facility Gen waste – Sent to non-hazardous landfill

1. Total waste arising Hazardous

2. Melt-shop – waste

Non-hazardous

Hazardous

Tonnes

Tonnes

350,000

180,000 160,000

300,000

140,000

250,000

120,000

200,000

100,000

150,000

80,000 60,000

100,000

40,000

50,000 0

20,000 2006

2007

2008

0.00

2009

3. Rod & Bar Mill – waste Hazardous

45,000

2006

Hazardous

Tonnes hazardous waste 700

40,000

600

35,000

500

30,000

450

35,000

400

30,000

350

300

20,000

200

10,000

100

5,000 2008

2009

0

Tonnes hazardous waste 500

20,000 15,000

Non-hazardous

40,000

25,000

2007

2009

45,000

25,000

2006

2008

Tonnes Non hazardous waste

400

0

2007

4. Section Mill – waste

Non-hazardous

Tonnes Non hazardous waste

22

Non-hazardous

300 250 200

15,000

150

10,000

100

5,000 0

50 2006

2007

2008

2009

0

Environmental Statement 2010 Celsa Manufacturing

Collection of Electric Arc furnace dust for recovery of zinc and other metals.

23

Environmental Statement 2010 Celsa Manufacturing

Transport impacts

‘improving and adopting sustainable transport options’ of its customers and transport network availability.

Where possible more sustainable methods of transport such as rail and sea are adopted as the preferred method of moving our raw materials and finished products.

S

As part of the EcoReinforcement Standard requirements, CELSA calculates the transport mileage and CO2 emissions by mode of transport for both its raw materials and finished reinforcing product deliveries.

This data is represented in the graph below.

Glasgow

nd

Edinburgh

Newcastle upon Tyne

la

.

Carlisle Belfast

a

n

d

Dublin

e

Irish Sea Liverpool A55

Holyhead

Rosslare

l e s

I r

a

1. Transport CO2 emmissions associated with Reinforcing Products

M6

M62

Rotterdam Zeebrugge

Birmingham n d l a n g E

W Fishguard Newport Swansea Cardiff Bristol M4 M5

Felixstowe

Zeebrugge London Oostende Dover Calais Folkestone Sangatte Boulognesur-Mere

c

e

Plymouth

124

Hull

Manchester

Portsmouth

g CO2 / tonne /km

Cherbourg

122 120 118 116 114 112 110 108

24

Ir

e

N

Cork

106

c

Aberdeen nd la ot

l

CELSA is committed to incorporating sustainability considerations into all of its manufacturing and business activities and recognises the need to balance the requirements of environmental, social and economic obligations with business growth aspirations.

Transportation and logistics is a key area where CELSA seeks to continuously improve and adopt more sustainable transportation options. CELSA utilises a range of transport methodologies including road, sea and rail, depending on the geographical location

2006

2007

2008

2009

F

r

a

n

Environmental Statement 2010 Celsa Manufacturing

Biodiversity CELSA inherited an already heavily industrialised portfolio of sites with little or no green space and hence very limited opportunities for enhancement of biodiversity.

Consequently this is not a key indicator for CELSA. The approximate areas for each site are: • Rod & Bar Mill (Castle Works) – 184,244 m2 • Melt Shop and Section Mill (Tremorfa Steel Works) – 324,344 m2

Of these areas it is estimated that <1.0% are unsurfaced.

As such, biodiversity at these sites is very limited and the sites have not been identified as important habitat sites.

However, CELSA does contribute to local projects where biodiversity enhancement is a key component.

Community and stakeholder engagement Overview At Celsa UK, we understand the effect that our operations can have on our local community and we strive to be a good neighbour and valued contributor to the local community. To this end Celsa is engaged in a number of community and stakeholder initiatives and projects.

Community Action Plan Firstly, we regularly consult and work with our neighbours through implementation of our local community action plan. This is reinforced by our commitment to the EcoManagement and Audit Scheme (EMAS), and our certification to the EcoReinforcement responsible sourcing standard that also incorporates local community engagement as mandatory.

Wildlife Trusts Wales Recently Celsa UK has become a Wildlife Trusts Wales (WTW) partner. Our Gold membership status demonstrates our ongoing commitment to local and national biodiversity. Our membership supports a diverse range of conservation activities at both a local and regional level. We are also integrating the WTW’s Cardiff Wildlife Garden Survey initiative into our local schools engagement programme.

Local Community Groups As part of our local community engagement strategy, we are actively involved in a number of groups and initiatives aimed at improving the local environment and the quality of life for members of our local community.

Celsa UK is an official partner of Cardiff Communities 1st; a Welsh Assembly Government flagship programme to improve the living conditions and prospects for people in the most disadvantaged communities across Wales.

We are also working with LEAF (Local Environmental Action Forum) to co-ordinate the Cardiff Garden Wildlife Survey (with local primary schools) on behalf of the Wildlife Trusts Wales. CELSA attends LEAF meetings and looks to develop partnership projects for the future.

LEAF is part of Cardiff Communities 1st and is the local environmental action group.

25

Environmental Statement 2010 Celsa Manufacturing

Community and stakeholder engagement Education Celsa works very closely with local education organisations.

We have for many years, sponsored a PhD programme and annual awards for Academic Excellence in Civil Engineering with Cardiff University. We are also involved in a programme of initiatives with local schools.

These initiatives range from educational competitions and workshops through to the sponsorship of specific activities and projects.

Since 2009 Celsa has been involved with the Engineering Education Scheme in Wales (EESW) in partnership with the Royal Academy of Engineering. The aim of the scheme is to encourage the best talent in our schools to take up engineering as a career. The mechanism is to organise industrial based engineering projects for teams of talented 6th form

students, which they will find both challenging and stimulating. Celsa have run projects in 2009 with Whitchurch High School and 2010 with Ysgol Plasmawr in Fairwater.

Carbon Trust Celsa UK are also working in partnership with the Carbon Trust to identify energy reduction measures which will help us to reduce our carbon footprint.

Cardiff Carbon Lite As one of the largest energy consumers in Cardiff we have joined the Carbon Lite â&#x20AC;&#x201C; Working Group Committee, as a partner, whose objective is to reduce the carbon footprint of Cardiff City.

Communication In August 2010 CELSA made some improvements to the company website. The changes were designed to improve communication with

its local community stakeholders. A local community content section was added to the corporate responsibility tab which included the addition of an email address for CELSAâ&#x20AC;&#x2122;s General Manager so that local stakeholders could communicate any concerns or issues to the most senior manager in the CELSA UK business.

Visit www.celsauk.com for details.

Local residents CELSA is committed to being a good neighbour. The views and opinions of local residents are extremely valuable to us and we take them very seriously. Any issues raised by local residents relating to Health, Safety and the Environment are investigated fully by our senior HSE team and where appropriate preventative measures are implemented

and feedback is provided to the concerned party.

We have been working with the Environment Agency to reduce the noise impact on local residents from the steelmaking process. After making significant changes to the scrap storage and handling procedures we have seen a real reduction in noise levels received at the local residents homes.

Contact us If you are a member of our local community and have a query, or would like to know more about us, please contact us by sending an email to: thegeneralmanager @celsauk.com, and we will respond as soon as possible.

Whitchurch High School EESW project.

26

Environmental Statement 2010 Celsa Manufacturing

Health, safety and employee engagement Overview CELSA is aware that practices and activities that can lead to significant environmental impacts can also have Health and Safety implications for employees and visitors and vice versa.

Consequently, there is a strong linkage between Health, Safety and employee welfare culture at CELSA, the Environmental Management and sustainability culture of the business.

Employee initiatives CELSA recently launched the Environmental, Health & Safety (EHS) Scheme. The EHS scheme is open to all employees and encourages them to make suggestions which will improve the Environmental, Health & Safety performance of the business. Suggestions are reviewed by the senior management team and improvements are

implemented accordingly.

Each quarter there is prize of £100 awarded for the best suggestion and an annual prize of £500 for the best overall suggestion Health & Safety Campaign This year CELSA launched a Health & Safety awareness campaign. The campaign was designed to raise awareness of the fact that 96% of all accidents in the workplace are the result of unsafe actions and only 4% are as a result of unsafe conditions.

A employee competition was launched to find a suitable slogan to support the campaign. The “Think 96/4 and be safe 24/7” was chosen as the winning suggestion.

1. Employee Accident Rates All injury frequency rates Lost time frequency rates No. of accidents per 1,000,000 hours worked 160 140 120 100 80 60 40 20 0 2007

2008

2009

Shaun Simmons recieving the Q2 – 2010 award from Francesc Rubiralta.

27

Environmental Statement 2010 Celsa Manufacturing

Environmental Statement Verification Statement â&#x20AC;?Further to consideration of the documentation, data and information resulting from the organisationâ&#x20AC;&#x2122;s internal procedures examined on a sampling basis during the verification process, it is evident that the environmental policy, program, management system, review (or audit procedure) and environmental statement meet the requirements of Regulation 1221/2009 (The EMAS Regulation)â&#x20AC;?.

Signed: Amanda Thorpe

Date: 11 November 2010 SGS United Kingdom Limited UK-V-0007

Our commitment to the future.

28

29

Design petergill.com 197710111

30

Celsa Manufacturing (UK) Limited, Building 58, East Moors Road, Cardiff CF24 5NN Tel: 02920 351800 www.celsauk.com queries@celsuk.com For more information please visit our website www.celsagroup.com