2011 Sustainability Report Acindar ArcelorMittal Group 1

Transcription

Transforming tomorrow
2011 Sustainability Report
Acindar
Grupo ArcelorMittal
Commitment changes
everything.
We strongly believe that commitment contributes to transform tomorrow.
It was with that commitment that our company was founded, which is why it has
always been a vital part of Acindar Grupo ArcelorMittal since its very beginning.
Thanks to this quality we have managed to be the leading company in the
Argentinian steel industry for seventy years now.
We foresee the future, developing producst and services based on asustainability
strategy that proves our commitment to transform the quality life of the world we
hope to live in.
Contents
Message from the board of directors
2
Corporate profile
4
Economic and financial performance
8
Investing in our people
10
Making steel more sustainable
24
Enriching our communities
44
Transparent governance
54
Message from the President | Engineer Arturo T. Acevedo
Promoting change
In 2011, due to the kind of information imparted in our Sustainability
Report and our adherence to the criteria established in the Guide
for the Global Reporting Initiative (GRI), we were given the
prestigious B standard. We are absolutely sure that we are on the
right track and this is a clear proof of that.
Beyond any possible doubt, we have grown during all these
years, we have re-invented ourselves as an organization, and
we have found obstacles, but we have managed to move on,
looking forward to the future with an optimistic attitude and
acting in the present with honesty, hard work and respect for
the people and their environment.
In addition to that, due to our Addiction Prevention Programme,
our company has been given the Business Citizenship Award, which
the American Chamber of Commerce in Argentina annually gives
to different companies.
In a world which is getting more global and more complex,
companies need to become real agents of change. In Acindar
Grupo ArcelorMittal, we are absolutely sure that the only way
to ensure our country’s sustainable growth is contributing to
the sustainable development of the community as a whole.
We are completely aware that our achievements have been reached
thanks to the effort, skills and commitment of all our collaborators
and all our contractor companies. With great pleasure, we invite
you to go through our 8th Sustainability Report, which proves our
collective will for change and the great commitment of a team of
more than 2,600 collaborators working to make a difference with
each step they take.
Loyal to this principle, since the very beginning, we have been
led by a strong determination to change the future, not for
ourselves, but for the future generations of millions of
Argentineans. That is why we have always taken on long-term
commitments in terms of social development, education,
management transparency and environmental care.
We are a company that seeks to build transparent and lasting
relationships of trust with all the people and institutions we
interact with. This effort results in the important recognitions
the company has been awarded, which we have been informing
in this Sustainability Report over the last 8 years.
In line with the Global Agreement 10 principles, we work hard
every day to improve our economic, social and environmental
performance.
2
Message from General Director | José Giraudo
Generating a sustainable world
During 2011, dramatic changes took place in the global economy.
The main countries in Europe and Asia had to face not only severe
economic and financial crisis, but also several natural disasters.
After the crisis that started in 2008, the USA is still going through
a recovery stage. This situation has caused several ups and downs
to all those companies that, like ours, operate in international
markets.
We also launched a project aimed at strengthening the
relationships with our employees, with the community and with
the unions. This project adds up to other programmes already
existing in the company in order to create instances of social
dialogue and to contribute to the development of the community
and the employees who work there.
We must keep on working seriously to face the future in an
efficient way. We need to continue working for our collaborators’
health and safety, a key factor for any steel company.
Our company has also been framed in this context of change, but,
thanks to the measures we implemented in the last two years, we
have managed to reduce the impact of most of these external
factors that have been undermining the business sector in our
country.
Today the company is faced with a situation that is difficult but
not impossible to deal with, in which fixed costs keep increasing,
supplies vary, our competitors’ production rises and manufactured
products are imported from countries with exceeding capacity.
Today the company’s main strength is its own staff. We are
working hard to make our company and our history become more
integrated in the Argentinean market, based on ArcelorMittal's
prestige, worldwide reputation and support.
We are part of a world company that -just in 2011- was
honoured with 272 awards for its environmental policy, its
leadership, its commitment to health and safety, its innovation
and management focused on sustainability, facts that result in
Grupo ArcelorMittal's steady participation in the Dow Jones
Sustainability Index and in the FTSE4Good, the sustainability
stock market index created by the stock market in London.
Beyond any possible doubt, great challenges await us, but we are
convinced that if we manage to coordinate all our collaborators’
efforts, we will be able to keep on this track, walking slowly but
steadily. All of us who are part of this company must take on the
responsibility of improving Acindar Grupo ArcelorMittal's
competitive position so as to ensure the company's sustainability.
We are convinced of the road we have taken. Steel plays a vital
role in this context and in the generation of a more sustainable
world. At Acindar Grupo ArcelorMittal, we are leading most of
the initiatives that will contribute to reach this goal for the
generations to come.
In the long term. In order to do this, we must achieve an increase
in productivity, profiting from the technology of the investments
we have made and the training of our human resources, who I
consider highly qualified.This is the only way for us to increase our
productive efficiency and to protect the company operations in
such a complex context.
3
Company Profile
Acindar Grupo ArcelorMittal
is a steel making company
producing long steels. It is
the leader in the Argentinian
market and it is also present
in the international market
Together with Grupo ArcelorMittal, it
represents in Argentina the biggest
steel group in the world, present in
more than 60 countries.
ArcelorMittal fills a leading position in
the main steel markets worlwide,
incuding the automotive, builing,
household appliances and packaging
industries.
It has production plants in more than
twenty countries in four continents,
which makes it possible for it to be
present in all the key steel markets,
both in developed and developing
countries.
Our plants location
Villa Constitución
Billets
Rebar
Wire Rod
Ground and Drawn Bars
Wires
Rosario
Rebar
Bars
Hot rolled structurals
Cut and bent rebar
San Nicolás
Bars
Hot rolled structurals
San Luis
Meshes
Nails
Tablada
Wires
Cut and bend rebar
4
We are going through a new stage, combining experience and leadership in
Argentinian steel production and supported by ArcelorMittal. As part of the
Group, we also want to participate in the challenge transforming tomorrow
implies, keeping our current position, commited with growth and financial
management based on our values: quality, sustainability and leadership.
Mission
Vision
Values
We are an iron company that produces
non-flat steels, leader in the Argentinean
market and with international presence.
Our values, rooted on every day work,
result from more than 70 years of
non-stop working and are present in all
the decisions we make, each of them
representing the attitude we would like
to work with.
They are convictions on which we base
our actions, decisions and the way we
work.
To strengthen our market leadership
and to keep a permanent and focused
international presence internacional,
Sustainability
Going beyond our clients’ expectations,
Contributing to our people’s
self-fulfillment,
Increasing our investors’ profits,
Developing sustainable relationships
with our suppliers,
Contributing with our community’s
development.
We are leading the evolution of steel
making so as to ensure a better future
for the industry and the generations to
come. Out commitment with the world
around us goes beyond financial results
and includes the people we invest in, the
communities we support and the world
where we work.
This long-term approach is the core of
our corporate philosophy.
Quality
We look beyond the present, to foresee
the steel of the future. So as to produce
the highest quality steel, we attract and
train professionals able to offer better
solutions to our clients.
Leadership
We think in a visionary way, creating
opportunities every day.
This entrepreneurial spirit has placed as
at the forefront of the steel industry.
Now, we will go beyond what the world
expects from steel.
Our Products
manufactures and distributes
more than 200 product lines
to fulfill the needs of the
manufacture, the farming and
the building industry markets.
Having a productive capacity of 1,700,000
annual tons, Acindar Grupo ArcelorMittal
develops high quality steels in billets, bars
(rebars, flat, rolled, drawn and ground bars),
wire rod, welded meshes, Preassembled
steel structures, Steel electrowelded
reticulate beams, wires, nails, Hot rolled
structurals, and many other accessories
(steel posts, Galvanized Steel Rods, Metal
Rods, etc.).
Acindar Grupo ArcelorMittal provides its
markets with products. In addition to that,
it also provides technical support to all the
product lines and system it promotes.
Likewise, and by means of Acindar Solutions,
it adds value to the construction market by
cut and bent rebars with “just in time”
delivery at the building site.
2011 - Distribution per markets
16,3% Foreign Market
83,7% Domestic Market
2011 DM - Distribution per sector
12,6% Farm
56,3% Construction
31,1% Industry
6
Our stakeholders
Why is Acindar Grupo
Why are stakeholders
How do we communicate
Key interests of our
ArcelorMittal important to our
important to Acindar Grupo
with our stakeholders?
stakeholders
shareholders?
ArcelorMittal?
Shareholders
It generates sustainable
growth and return to
shareholders.
Capital contributions and
support to business
management.
Periodic reports.
Plant visits.
Regular conference calls.
Corporate governance.
Workplace safety.
Climate change.
Corporate Responsibility.
Clients
It provides quality products
and services, creating
customer value.
Developing strategic
customers enables sustainable
development.
CRM. Customer visits.
Technical talks and training.
Participation in exhibitions.
Product Quality. Delivery
compliance. Correct application
and/or use of products.
Employees
Workplace for employee
development.
Our employees' productivity,
quality and leadership are key
to the success of the company.
Breakfast with the CEO.
Intranet. Internal publications.
Training programmes.
Good working environment.
Development opportunities.
Compensation and rewards.
Suppliers
Development of their own
businesses. Value chain
sustainability.
To have reliable suppliers aligned
to Acindar Grupo ArcelorMittal's
Code of Ethics.
Commitment and dialogue.
Value chain sustainability.
Medium and long term
contracts.
Transparency in procurement
processes. Appropriate
payment conditions.
Sustainability actions.
Local
It contributes to the
development in education,
health, environment, among
others.
To support the communities
where the company is based
through programmes of solid
and sustainable development.
Community actions. Education,
health and environment
programmes. Corporate
volunteer activities that benefit
the communities.
Social inclusion. Commitment
to the community.
Government
It generates economic growth,
provides jobs and increases
taxes.
For the development and
promotion of appropriate
market conditions.
Formal meetings. Hearings with
different representatives.
Social and economic
development.
Job opportunities.
NGO
It monitors society's needs
are being satisfied.
Acindar's working method
becomes more transparent
through a different and
independent channel.
Formal meetings. Information
submitted in notifications.
Environmental protection.
Economic and social
development. Health and
safety conditions at work.
Public and
Understanding the industry's
needs and market trends.
To channel business needs in
order to have a safe and
coordinated access to
government bodies.
Formal dialogues. Periodic
meetings. Participation in
committees. Hearings.
Social and economic
development.
Sustainability.
It provides information on the
company's environmental,
economic and social
management system.
To build and protect brand
reputation.
Press releases. Publications in
local and national media.
Industry challenges and
development. Environmental
concerns. To know the
Corporate Responsibility
practices. To have the support
of a leading brand.
communities
private
Organizations
Media
7
Economic and Financial
Performance
The Company net sales, considering
taxes, increased by 28%, reaching
$ 5,497.9 million for the fiscal year
closed on December 31, 2011,
compared to $ 4,295.4 million for
the fiscal year 2010.
The Company average sales costs were
23% higher than in 2010, mainly as a
consequence of the increase in the price
of the main supplies, such as electricity,
natural gas and labor.
Gross profit up to December 31, 2011,
reached $ 786.9 million, compared to
$ 835.2 million gross profit in the
previous fiscal year.
Administrative and trading costs added
$ 175.8 million, which represents 3.2 %
of net sales.
The operative result plus redemption,
EBITDA, was $ 662.4 million for the
fiscal year that ended on December 31,
2011, while in 2010 it reached $ 792.1
million.
Income tax on profit meant a loss of
$ 134 million, but it results from the
profits that were generated during
this fiscal year.
The net stockholders’ equity totals
$ 1,891 million up to December 31,
2011, compared to the stockholders’
equity of the previous year, which
totaled $ 1,948 million.
During the fiscal year that ended on
December 31, 2011, profits totaled
$ 337.3 million, which was less than
the $ 415.5 million recorded the year
before.
The Company ended the fiscal year with
a net cash position (cash + investments
+ liabilities) of $ 326 million.
Activities performed at Acindar
Production
Production evolution over the last two fiscal years
Production KT 2010
Direct Reduction
Steel Mill
Rolling Mill
Wires
Production KT 2011
843
1252
1113
179
Direct Reduction
Steel Mill
Rolling Mill
Wires
976
1380
1273
202
Consolidated sales
Total sales reached 1.254.058 tons. 85% of the total sales was aimed at the internal
market, while the remaining 15% was sold to off shore clients for a total of 191,680
tons.
The total sales income, at an estimated price of $4.479, showed a year-on-year
increase of 19.4 % and reached $5.617 million.
Shipments for Domestic Market (Th Tons)
Shipments for Foreign Market (Th Tons)
1.062
192
Net Price for Domestic Market (ar$t)
4.366
Net Price for Foreign Market (ar$t)
3.639
Net Sales for Domestic Market (MM AR$)
4.639
Net Sales for Foreign Market (MM AR$)
697
Average TC
4,13
8
Investments
The company continued with its investment
plan. Most of the works are carried out in
Villa Constitución plant, where all the
primary processes to manufacture our
products take place.
In addition to that, a 25 TN overhead
traveling crane used to deliver rolled
bars was replaced.
Our main works in Villa Constitución
At present, we are building a plant to
handle liquid effluents in Tablada wires
plant, while a liquid effluents permanent
monitoring system is being installed in
Rolling Mill no. 2, Stell Mill and DRI plant
in Villa Constitución.
We started an important environmental
improvement project at Steel Mill so as
to minimize the level of toxic fumes
generated by the casting process.
In order to develop the industrial safety
projects in all our plants, a fire protection
system is being installed throughout
Tablada plant.
This improvement project in the Steel
Mill Fumes Suction and Filtering area
adds a new industrial filtering and suction
system with a new electric substation.
The start-up is expected to take place
in 2013.
In Fenicsa plant, the system to load billets
to the reheating furnace was automated.
Another aim of this project was to increase
industrial safety.
A new ladle crane was bought for the
Steel Mill so as to substitute the existing
one and speed up production processes.
It is expected to be installed in 2012.
In the SBQ rolling mill, the adjustments
in the cooling floor aimed at improving
the SBQ bars quality were completed.
In order to develop our business partners,
cut and bent rebar machines have been
added, which renews Acindar’s commitment
with the sales network expansion.
Taxes
Acindar Grupo Arcelormittal paid taxes for
M$ 445.422.458.
9
2012 prospects
In 2012, the economic recovery will
continue, but at a slower pace than in
2011.
The local economy will grow at a
moderate rate
As regards the demand, we believe that
those factors that, up to now, have
promoted growth will get weaker and
weaker, rates will not go back to the
levels they had in early 2011, and the
job market margin available to generate
jobs will shrink.
As regards the offer, costs (specially
those related to manual labor), together
with the real exchange rate appreciation,
will start having a stronger impact on
the loss of the company’s competitive
position.
The main problem for this new year will
be the inflation acceleration and the
exchange rate lag, which will together
define an increase in inflation in dollars,
thus making our competitive position
even weaker than in the last few years.
Investing in
our people
Communication with
our employees
Project “Strenghthening
our bonds with the staff,
the community and the
unions”
V. Constitución Plant.
A project to strengthen the relationship
with employees, the community and the
unions has been launched. It cuts across
existing programs in the company
designed to generate opportunities for
social dialogue and the development of
the employees and the community.
In 2011, the integration of the Human
Resources areas was consolidated during
the process of corporate restructuring
that was implemented throughout the
company.
This structure aims to centralize the
processes that were separated by
business, reassigning roles and
strengthening the focus on the plants
and internal customers.
Breakfast meetings
with the President and
the CEO
These meetings continued and they are
organized in order to foster communication
with employees.
Internal Communication
Survey
The first Internal Communication Survey
for all employees was carried out.
Argentina was ranked among the 5 countries
with the highest approval among more than
25 countries throughout the Group.
Joint Global Health and
Safety committee
Representatives of labour organizations
work together with the heads of the
different areas about improvement
opportunities for the plants and
subsequent action plans.
In March, the Joint Global Health and
Safety committee visited us presided
by Frank Haers, the highest authority in
charge of Safety at ArcelorMittal.
12
Campaigns
As for consulting, we have developed more
than 20 campaigns about health, safety,
development, benefits, Acindar Foundation
and ArcelorMittal Foundation activities,
risk management, continuous improvement,
and environment, among others.
Global Intranet
After a migration process that took several
months, Argentina and other countries of
the Group are part of the global intranet, a
platform that facilitates the integration and
the access to global and local information in
only one place.
Community
Corporate Volunteering
During 2011, employees from Acindar,
ArcelorMittal Group, spent over 20
hours on corporate voluntary activities.
Accenture Marathon
For the second consecutive year, Acindar
Grupo ArcelorMittal takes active part in
the Charitable Marathon annually
organized by Accenture.
Solidarity holidays
ArcelorMittal Employee
Relations Policy
To contribute to the sustainability of the company through continued social
dialogue with our employees and trade unions.
To ensure that the behaviour of employees is guided by the code of business
conduct.
To create a work environment that privileges the quality of life and stimulates
behaviours that conciliate the economic, professional and personal interests.
During September, volunteers from Acindar
Grupo ArcelorMittal built three houses
in “22 de enero” neighbourhood, in La
Matanza district, together with 11
international volunteers from ArcelorMittal
Group who arrived in Argentina from France,
Costa Roca, Mexico, Brazil and India, who
donated a week of their holidays to
participate for a week in a corporate
volunteer work in Argentina.
ArcelorMittal Volunteer Day
More than 35 volunteers participated in
the two volunteer work events that were
organized in the community of Villa
Constitución.
The playground rides in two squares in the
community were painted and refurbished
so as to preserve green areas where kids
can play safely.
Our relation with the
unions
The company continually intends to keep
an open dialogue with the unions and to
strengthen our relation with them. That is
why it works together with the workers
and it fulfils ArcelorMittal employee
relations policy.
13
Our Employees
Acindar ArcelorMittal Group has 2.649 employees, who work distributed in the different locations where the
production plants are located.
Categories:
Composition of the company
governance bodies divided into
gender and age
Localization
Number of employees
Beccar, Prov. of Buenos Aires
151
Tablada, Prov. of Buenos Aires
385
Rosario, Prov. of Santa Fe
176
Villa Constitucion, Prov. of Santa Fe
1.617
San Nicolas, Prov. of Santa Fe
170
Villa Mercedes, Prov. of San Luis
150
Total
Executives
Area Manager
107
Exempts
222
Administrative
446
Blue-collar
1.944
Global Total
2.649
Under collective agreement
1.944
% over the total
Agreement
2.649
UOM
ASIMRA
Total
14
43
73%
Number of employees
1.732
212
1.944
Corporate benefits
Programme Avanza
There are important discounts available at
gyms, restaurants, cinemas, theater rooms,
spa saloons, massages, haidressers’ shops,
among many other services.
Acindar Avanza (Acindar Moves Forward)
is a corporate benefit programme for all
the staff that was launched in 2011.
It offers an Internet portal that all
employees can access to learn about their
portfolio of benefits and a discount card
to buy at the major shops in the cities
where they live.
Benefits
Quality of life
Acknowledgement
Discounts
In addition, we have kept our benefits policy
aimed at improving our staff’s quality of life.
Benefit
Detail
Pension scheme
Created to supplement social security benefits, by means of a system of shared contribution.
Matching 1 to 1.
Life insurance
The company provides an additional life insurance coverage.
Medical plan
APDIS health insurance: 100% coverage for both the employee and his/her family. Provider:
Galeno.
Medical check
Annual medical checks for blue-collar workers and, every two years, for exempts.
Cafeteria
The location has a cafeteria.
Loans
There is a loan policy for the staff. Five salaries or more at an annual nominal interest rate of 6%.
Share purchase
During 2010, the ESPP program was carried out offering shares to employees at a discount
of 10% and 15% on the market price.
Nursery
The company covers the nursery expenses for each child a female employee has from the end
of the maternity leave until the child is 5.
Discounts on products
Employees receive discounts on the final sales price.
School Kits
Employees received school kits for their children between 5-14 years attending school.
Total amount distributed in 2010: 1580.
Banking services
The company pays for salary accounts, credit cards, cheque books, and saving accounts in
pesos and dollars.
Charter
The company provides the charter service to every location: Villa Constitución, Tablada and
Corporate Headquarters.
Seniority awards
Seniority-based awards: 20 years, Silver Medal; 25 years, Gold Medal; 30 years, Gold Watch;
40 years, a trip.
Layettes
The company employees are given layettes for each birth of a child.
Social security consultancy
Acindar offers and pays for social security consultancy for employees who are about to retire.
15
Health and safety day
“Journey to zero accidents”
In April, as every year, a new edition of
ArcelorMittal Health and Safety Day was
celebrated in all locations. It has been
celebrated for six years and it creates
a space for reflection to continue
implementing actions to build a healthier
and safer environment.
Over 2,000 people, including our own
staff, contractors, suppliers and
representatives from the community
participated of:
Trainings
Drills
Presentations
We made progress on the program Journey
to Zero accidents aimed at achieving
accident-free workplaces.
Strengthening the implementation and
enforcement of FPS (Fatality Prevention
Standards) on April 22, 23 and 24, there
was a corporate audit on the progress and
implementation of the Fatality Prevention
Standards.
16
Training our employees
Evaluation of more than 82 suppliers who
are critical for the company.
Acindar ArcelorMittal group offered its
employees a variety of programmes and
activities in 2011.
Our goal of Client Complaint Rate was
reduced by 10% compared to the real
goal in 2010, which was achieved by
140%.
Their main objectives were:
The first Joint Health and Safety
Committee in Argentina was implemented
in Villa Constitución, San Nicolás and
Tablada plants.
To integrate new employees to the
company and to ArcelorMittal Group
through its Induction Programme.
Reinforce and improve general job
skills that integrate the ArcelorMittal
core work behaviours.
Develop / improve middle managers
and area managers leadership skills.
Deepen and acquire new technical
skills based on the employee’s role.
Train operators (current and new) to
make sure they have the theoretical
and practical knowledge necessary to
perform competently in their jobs.
Improve English language skills (official
language of the ArcelorMittal Group).
Promote and accompany employees'
initiatives to take up Postgraduate and
Master studies. To this effect, new loans
have been offered to the employees.
77 Quality, Safety and Environment
Internal Audits were carried out between
2010 and 2011.
16,35 Hs/h
Blue-collar
workers
38,50 Hs/h
For Administrative
Personnel / Staff /
Exempts and ASIMRA
affiliated employees
Integrated Management
System / Quality - Safety
and Occupational Health
In 2011, the hard work of Acindar
Train employees on Acindar ArcelorMittal ArcelorMittal Group to improve quality,
Group management Model through a
safety and occupational health was
network of internal trainers.
present in different campaigns and
activities:
In 2011 and as a result of the
above-mentioned activities, in Acindar
ArcelorMittal Group , there was a total
of 24.5 man-hours (M/H) of training
per person (3 days in the classroom)
distributed in the following way:
18
External Audits: the scope of ISO 9001,
ISO 14001 and OHSAS certifications was
changed to “Production, Marketing,
Distribution and Technical Support for
steel products for the Industry, Agriculture
and Construction.”
By doing so, one certificate per Standard
was obtained, including all processes and
locations.
2011 Graduates
Eleven operators from Acindar Villa Mercedes
proudly received their secondary school
diplomas after two and a half years of effort
and dedication.
“We can proudly say that, after two and a half
years of fighting against adversities, such as
not being at home with the family or attending
classes before or after work, 11 employees
from Acindar took advantage of the
opportunity of finishing their secondary
studies and achieved it”, said Cristián
de La Vega from Human Resources
Management of Acindar Meshes and Nails.
Operational staff
Recognition Programme
This Recognition Programme
started in September 2004.
Medals are monthly awarded to those
employees whose performance and
behaviour have proved their commitment
with Acindar values.
19
Outstanding operators, the Business
Director, Managers, Area Managers and
Human Resources participate of a medal
award ceremony every month.
Technological incentive
seminar (SITEC)
Accidentology or accident statistics
Own Personnel – No. of Accidents
2010
2011
No sick leave
77
111
Tempory leave
6
3
Indefinite sick leave
0
0
Deaths
0
0
Frequency rate
0,86
0,42
Severity rate
0,008
0,007
Contractor personnel | Accidents
2010
2011
The works developed are focused on
Quality, Health and Safety, Environment,
Productivity, etc.
No sick leave
57
46
Tempory leave
14
5
Indefinite sick leave
0
0
Twenty-six improvement teams took part
in it. Two of them were schools: Escuela
de Educación Técnica N° 2073 San Pablo
and Escuela de Educación Técnica N°
466 Gral. Manuel Nicolás Savio, and the
Office for Human Resources of the
Municipality of Villa Constitución.
Deaths
0
0
Frequency rate (*)
0,82
1,07
Severity rate (*)
0,003
0,022
The 18th SITEC was carried out.
This event gives all company
employees the opportunity to
share the improvement works
implemented in the different
company processes/sectors.
In addition, different community
sectors participate in it.
(*) Frequency Rate: It shows the number of workers who suffered accidents, during a
year, per million hours worked.
Severity Rate: It shows the number of days of work lost in a year, per thousand
workers exposed.
Achievements in
terms of safety
In 2011, the number of own
personnel temporary leave
events was reduced to a half.
The frequency rate of temporary
leave events for own personnel
and contractor personnel
decreased by 20%.
The total number of events for
own personnel and contractor
personnel were similar to those
in 2010.
20
Addiction prevention
Programme
Acindar ArcelorMittal Group won
the Corporate Citizenship Award
Amcham given by its Addiction
Prevention Program.
The Acindar ArcelorMittal Group Addiction
Prevention Programme is a comprehensive
programme designed to address problems
associated with the consumption of legal
and illegal drugs by Company employees,
by preventing and reducing consumption
and providing help to treat these problems.
The initiative includes all Acindar
ArcelorMittal Group own and contractor
personnel, and it is being implemented in
the 9 medical service centers of the
company located at the different plants
in the country: Villa Constitución, Villa
Mercedes, San Nicolás, La Tablada and
Rosario.
Results 2010-2011
50%
Ceased
6%
Decreased
The project includes:
Tobacco Cessation Programme
Alcoholism Prevention Programme
Drug Addiction Prevention
Programme
27%
Abandoned
program
17%
Not ceased
The objective of this campaign is to make
employees aware of the harmful effects
of alcohol and other drugs on health,
develop with employees a concept of
co-responsibility to foster an drug - and
alcohol- free workplace and ensure greater
effectiveness of safety policies and actions.
Absenteeism rate
During 2011, an important effort was
made so as to tackle the problem of
absenteeism.
Thanks to that, it was possible to keep
the reduction values obtained over the
last years. In order to achieve this, the
plant management areas managed to
work collaboratively and carried out
position reports, monthly absenteeism
meetings and tracked chronic absent
employees.
3,93%
2010
21
3,01%
2011
Health week
Participants detail
From October 17 to October 21, the
health week took place in ArcelorMittal
worldwide.
In Acindar ArcelorMittal Group, activities
were carried out in all locations to make
employees, contractors and the
community aware of health care.
Contractors
Community
Managers
GMB
Total
Where
Event
Villa Constitución Plant
Acindar 10K Marathon - Community
Talks on addition prevention and HIV
Community
Periodical medical checks
Alcohol Test Control
Blood glucose control
Smoking survey
Pressure Control
Control IM
Theoretical and practical medical emergency course (RCP)
940
460
10
0
1.900
Number of Participants
400
60
1179
105
110
135
142
142
10
Rosario Plants
Cardiovascular risk talks
Control IM
Pressure Control
85
124
75
75
Tablada y Beccar Plants | BA
Talks on addictions, smokers
Talks about healthy eating habits
Pressure control
Smoking survey
36
70
8
108
85
98
San Nicolás Plants
Control IM
Alcohol Test Control
Pressure Control
20
40
50
29
19
Villa Mercedes Plant | San Luis
Talks about health care and quality of life
Talks about stress at work
Talks about gambling
Talk about eye care at the workplace
30
15
20
30
22
Making steel
more sustainable
Life is in nature.
Take care of it.
Environment
workshops
On June 5th, the ArcelorMittal
Group commemorated the World
Environment Day, based on 2011’s
theme proposed by the United
Nations, 'Forests: Nature at your
service'.
During 2011, Environment
Workshops were conducted for
6th grade students of several
schools in Villa Constitución,
San Nicolás and Villa Mercedes.
Different activities took place at all
Acindar ArcelorMittal Group locations.
Some of the most important were the
distribution of e-bags designed to
replace plastic bags in supermarkets,
the review of environmental
improvements made in recent years,
and the presentation of projects carried
out during 2011.
Issues discussed were related to the
material these children received from
Acindar Foundation.
In addition, 450 trees were planted in
Villa Constitución, San Nicolás and
Rosario.
.
Number of activities and children
trained (Villa Constitución, San
Nicolás and Villa Mercedes)
22
Schools / Workshops
752
Students
Activities included separating waste,
classifying some of the waste used
in the previous game under the '3Rs’
(Reduce, Recycle and Reuse), and
learning messages about environmental
care by playing Planetest (memory
game with tips for the protection of the
environment).
To conclude the workshops proposed
by Acindar Foundation’s programme
‘The Planet is your Home, take care of
it’ and the campaign ‘Transforming Green
Spaces’ proposed by the company's
Environmental team, trees were planted
in the cities of San Nicolás and Villa
Constitución.
26
35
Courses
In San Nicolás, 100 trees of various species
were planted in the ecological reserve
‘Parque Rafael Alvear’.
Students, Acindar executives and government
officials planted 60 yellow Ipês in the square
located in the neighborhood called ’25 de
Mayo’ in Villa Constitución.
To carry out this activity, approximately
67,000 plastic caps and 56 kg of paper were
collected by students and teachers and
donated to the Garrahan Hospital.
Environment Day
"Forest, nature at your sevice"
Good Environmental Practices at Acindar
Villa Constitución
The company employees themselves suggest possible improvements for their working environment. One of the projects submitted
was called “Reduction Shumag 5 Oil Consumption in Bars Wire Drawn”.
Reducing Shumang 5 oil consumption in Bars Drawing
Identified problems
High expense on Anticorrosive oil.
Large amounts of contaminated oils.
Many hours spent on cleaning grinders.
Proposed goals
Reduce anticorrosive oil consumption and oil waste.
Reduce time spent on cleaning grinders.
Reduce cleaning solvent consumption.
Improve surface quality of the material produced.
Achievements
Reduced oil consumption. It was possible to save a 50 % of oil (500 litres of oil are
no longer used every month).
It was possible to improve the H/man necessary for the machine cleaning time.
75 % less time is necessary.
Reduced cleaning solvent consumption.
27
Environmental
Management Acindar
Villa Constitución
During 2011, we continued working
for continuous improvement, legal
compliance, maintaining ISO 14001
certification, using environmentally
friendly processes, and providing
support to the different activities
employees and the community are
involved in.
82 audits were performed to Suppliers
in situ, controlling environmental points,
for example: Current legislation, Aspect
Identification and Impact Assessment
(AIIA), control measures, Environmental
Monitoring, etc.
Trainings
TL2 Chimney
Trainings were organized during that year,
and the following topics were addressed:
Waste management, environmental and
environment aspects-impacts, emergency
responses, and recovery of waste oils with
the participation of our own staff and
contractors' personnel from the different
operating shifts. They were provided to
Villa Constitutción employees working in
the plant.
Obtain a diagnosis of the emission of Black
Fumes from the chimney of TL2 Reheat
Furnace.
Environment Management
We received approval of the Ministry of
Environment to conduct an Environmental
Impact Study in the Landfill where the Dust
from the Meltshop is disposed.
Environment projects
Several indicators were implemented so
as to check environmental management: During 2011, various projects for
improving environmental management
were developed.
Environment Performance Index
(EPI)
Recovery of by-products
The Environment Performance Index (EPI)
Develop alternative studies to recover
was carried out, for the Presidency, NIS
and the various Industrial Plants: Steel Mill, slag and dusts that have the potential
DRI, Rolling Mill, Other Locations, it indicates to be reused internally or externally
the performance of plants on significant
environmental issues.
GEI (Global Environmental Indicator)
It measures air emissions, waste generation
and mass load of compounds from liquid
effluents returned to the Paraná River.
Results were very good, meeting our goals
and comparing them to those of other
Plants from the Group with similar processes.
Closing index for Potential Impact
Situations (PIS)
We continue monitoring it to avoid or
resolve the environmental impact caused
by industrial activity.
28
Effluent control:
Install continuous monitoring equipment
according to legal parameters for the
discharge of effluents into the river.
Afforestation:
Develop shelterbelts to minimize visual
pollution in the community, learn about
current biodiversity and interesting
spaces for conservation.
Afforestation in plants
to minimize contamination
Specific Consumption of Natural Gas
Acindar Villa Constitución
Specific Consumption of Electric Power
265,0
1,00
260,0
0,80
250,0
(MWh/Tn)
(Nm3/Tn)
255,0
245,0
240,0
235,0
2010
2011
230,0
225,0
0,60
0,40
2010
2011
0,20
220,0
215,0
0,00
Increased consumption of natural gas comes hand in hand
with an increased production of raw steel.
Despite an increase in production, power consumption values
suffered no variation. This reflects a more efficient use of
resources in the production process.
29
Materials used, by weight or volume
During 2011, the following tons of materials were used:
2011
2010
Non Renewable Materials
Tons
Non Renewable Materials
Tons.
Electric Furnace Electrodes
2.746
Electric Furnace Electrodes
2.393
Calcined Dolomite
Lime
100.957
1.425
Calcined Dolomite
102.334
Lime
1.247
External Coke
22.433
External Coke
29.266
Total (Tons)
127.561
Total (Tons)
135.240
Direct Materials
Tons.
Direct Materials
Tons.
Ferromanganese
1.418
Ferromanganese
3.147
Pellets
Scrap Collection
Scrap Bought
Total (Tons.)
1.410.393
146.214
Pellets
1.239.458
Scrap Collection
143.007
459.622
Scrap Bought
411.596
2.017.647
Total (Tons.)
1.797.208
30
If we compare these figures and specific
values to those in 2010, we can notice a
decrease in non-renewable materials use
in 2011.
Improvements were due to the optimization
in the use of materials at the steel mill.
As for direct materials, there was an increase
in absolute and specific consumption in 2011.
Percentage of valued materials used
The valued material used is the external scrap the company
buys.
2010
22,9%
In 2011, 445,031 tons were bought, 22.7% of the direct
materials used.
2011
22,7%
In 2010, 411,596 tons of scrap were bought, 22,9% of
the direct materials used.
Direct consumption of energy by primary sources
Energy total direct consumption = Direct primary energy purchased + Direct primary energy produced - Direct primary energy sold.
2011
LPG (Liquefied Petroleum Gas)
Direct Primary
Direct Primary
Direct Primary
Energy Bought (GJ)
Energy produced
Energy sold
95
-
-
Natural Gas
12.834.598
-
-
Electricity
11.391.069
-
-
High Purity Oxygen
Nitrogen
Argón
Compressed Air
Energy total direct consumption
510.161
-
-
30.453
-
-
993
-
-
64.360
-
-
24.831.729
-
-
2010 (historical record)
LPG (Liquefied Petroleum Gas)
Direct Primary
Direct Primary
Direct Primary
Energy Bought (GJ)
Energy produced
Energy sold
85
-
-
Natural Gas
11.355.011
-
-
Electricity
10.728.895
-
-
370.568
-
-
High Purity Oxygen
Nitrogen
Argón
Compressed Air
Energy total direct consumption
27.006
-
-
1.147
-
-
68.101
-
-
22.550.813
31
We notice an increase in most energy
sources, hand in hand with the increase
in production in 2011. It is not the case
of specific consumption since there was
a decrease in the consumption of three
sources:
Specific consumption
Consumption
Specific Volume
This value includes Water in Contact (with
billets) and Water not in contact (closed
circuits in furnaces and systems).
(m3/tab)
Consumption 2011
23
Consumption 2010
29
Circuits
Total 2011
Recirculation water (m3)
Re-filling water (m3) (m3)
Specific Consumption 2010 - 2011 (%)
-4
Argón
- 21
Compressed Air
- 14
Specific Water Consumption
35,0
Values decreased due to the optimization
of resource use in the production process.
Total water collection by
source
2011
Collected volume
Surface water
Underground water
Total water collected
25,0
20,0
15,0
2010
2011
5,0
Total direct and indirect
emissions of green house
effect gases, in weight
It is calculated taking into account specific
data of each location. We analyze the
composition of fuels, raw materials, supplies,
waste, etc.
32.098.000
243.000
32.341.000
The absolute consumption of collected
water in 2011 is lower than in 2010
despite increased production, so more
efficient use of collected water can be
observed due to small improvements in
plant processes and awareness raising
measures.
Note: There are other closed circuits in the plant
that do not have flow gauges and therefore are
not included in this point
10,0
0,0
(m3/year)
36.890
30,0
(M3/Tn)
Electricity
22.215.490
Percentage and total
volume of recycled and
reused water
In 2011, there was an increase in recycled
water consumption, due to the existing
recirculation in the SBQ Rolling Mill.
Had it not been for the recirculation,
There are smaller volumes of water that
22,252,380 m3 of water would have
have not been included in this calculation
because we do not have the actual values been used for this Rolling Mill.
since not all water inlets have flow gauges.
In 2011, only 36,890 m3 of water were
used to make up for spills and evaporation.
Below, we can observe 2010 and 2011
decrease in specific consumption:
Thus, the volume of water reused for the
SBQ Rolling Mill process equals
22,215,490 m3 and recirculation water
represents 99% of the total amount of
water needed for the rolling mill process.
28
32
Emissions
Tn CO2/ tab
2011
1,052
2010
1,077
In 2011, specific CO2 emissions decreased
compared to 2012 while absolute emissions
were higher in 2011 than in 2010, since
there was a 10.2% increase in production
compared to the previous year.
Emissions CO2 -2011
Emisiones directas
Emisiones indirectas
Total emissions
Emissions CO2 -2010
Tn CO2
799.065
652.959
1.452.024
Tn CO2
Direct emissions
737.976
Indirect emissions
611.847
Total emissions
1.349.823
NOx, SOx and other
Total spills of waste waters, by their origin
significant emissions to the and destinations
air by type and weight
During 2011, as stated in the monitoring
schedule, gaseous effluents were measured
twice.
From the results, we have obtained the
following numbers:
Year
MPS (t)
SO2 (t)
NOx (t) CO (t)
2011
88
27
1044
244
2010
113
90
900
106
Year
Volumen (m3) (*)
DQO (tn)
Suspended solids (Tn )
F (Tn)
2011
30.688.000
334
378
23,7
2010
32.822.000
275,61
929
7,5
Zn (Tn)
0
3,4
(*) Spilt water destination: 100% to the Paraná River
All the treatment methods for the spilt water are biologic and physico-chemical.
The biologic methods are applied particularly to the sewer effluents by means of aerobic
digestion called “activated muds” with final oxidation with chlorine.
There was a decrease in the SO2 and MPS
parameters while NOx and CO increased in
tons compared to 2010.
The physical methods are performed by means of settlement ponds, aimed at decanting
solids and cooling the effluent. The chemical methods depend on the dose of coagulants
and flocculants to improve or speed up the settlement of solid particles, and also depend
on the neutralization of acid effluents by adding caustic soda.
Over the years, there has been a significant
reduction in Solid Suspension due to effluent
There was a decrease in the Suspended Solids and MPS parameters while F and DQO
treatment processes.
increased in tons compared to 2010.
Other variations are not significant.
29
33
Generated waste total weight, by type and disposal methods
There was an increase in hazardous
waste and a decrease in non hazardous
waste if we compare 2010 and 2011.
If we compare the 2010-2011 period
considering specific waste values, the
following variations will be observed:
2011
Hazardous Waste (ton)
Generated
Stored in situ
533.400
-
411.263
-
31.473
15.180
90.664
Recycling
Spillway
Incineration
2% decrease in Hazardous Waste
generated
10% decrease in Non Hazardous
Waste generated
18% decrease in waste recycling
2% increase in waste sent to the
spillway
31% decrease in the amount of
waste sent to thermal destruction.
Non Hazardous Waste (ton)
15.728
548
-
2010 (Historical record)
Hazardous Waste (ton)
Non Hazardous Waste (ton)
Generated
14.494
Stored in situ
13.776
53.130
-
454.072
-
27.925
718
-
Recycling
Spillway
Incineration
535.127
Most significant spills total number and volume
Spill Location
Oil Spills at the Bars Drawing Waste
Disposal Point
Escape of oil from the holding chamber
to the storm sewer
Oil Spill at the Containment Tank of
Compactor N°2
Oil Spills at the DRI lubricant
containers
NOVUS CB 2691 Spills
Kick Off –SBQ Oil Spill
KA48A Compressor Oil Spill
Oil spills at the Compactors Hydraulic
systems Basement –TL2
Oil Spills at the Nave Astori-SBQ
Disposal Point
Fuel Oil Spill at the Power Station
Oil Spills at the Bars Drawing Waste
Disposal Point
Fuel Oil Spill on the Power Station Floor
Oil Spill at the Maintenance Fencing
Oil Spill at the Bars Drawing oil tank
Spill Volume
Spilled material
Impacts on the Environment
150 liters
Used oil
Exhaustion of Resources. Soil Pollution
500 liters
Lubricant
Water Pollution
2000 liters aprox.
Hydraulic Oil
Exhaustion of Resources
500 liters aprox.
200 liters aprox.
100 liters aprox.
20 liters
Lubricant
Chemical Product
Hydraulic Oil
Oil
Exhaustion of Resources. Water Pollution
Exhaustion of Resources. Soil. Water
2000 liters
Oil
20 liters aprox.
50 liters
Water and Oil
Fuel Oil
50 liters aprox.
100 liters
20 liters aprox.
1000 liters
Used Oil
Fuel Oil
Hydraulic Oil
Hydraulic Oil
Note: None of the events above mentioned affected areas outside VC Plant, and they were immediately dealt with so as to minimize the
environmental impact they may have caused.
34
Weight of transported,
imported, exported, or
treated waste deemed
hazardous
By the Basilea Agreement, appendixes
I, II, III and VIII and percentage of waste
transported internationally.
In 2011, 548 tons of hazardous waste
were collected and treated by external
suppliers. The treatment used for the
waste final destruction is thermal
destruction.
Hazardous waste was transported from
our plant to the treatment plant in Santa
Fe province.
There was a decrease of this waste from
2010 due to improved waste management
and awareness training for operational staff.
Total environmental protection expenditures
and investments by type
Waste Elimination (Waste final
disposal)
The final disposal cost of the waste
generated at the company plants in
2011 was:
Villa Constitución plant: $ 1.095.124.
San Nicolás plant: approximately
$ 20.000.
Rosario plant: approximately $ 35.000
Costo tratamiento efluente TL2
During 2011, the cost of chemical treatment
for liquid effluent was $ 1.356.425.
Prevention and environmental
management costs
During 2011, the prevention service cost in
case of spills was $42.600. The annual cost
of oils extraction and control in rolling ponds
and continuous casting was $39.240.
Waste treatment (Hazardous waste
thermal destruction)
Spills remediation costs
The cost of dangerous waste treatment
at the company plants in 2011 was:
The estimated spills remediation cost is
about $140.000.
Villa Constitución: $ 1.262.805,74
(including liquid and solid waste,
batteries and asbestos).
San Nicolás: approximately $160.140.
Rosario: approximately $145.000.
Environmental Monitoring Cost
The cost during 2011 was $ 499.511
Emissions treatment: House Filters
and Bars Drawing
The cost for smoke house filters
replacement during 2011 was
$ 471.240 and the cost of filter
replacement in Bars Drawing during
the same period was $ 112.849.
Management system external
certification:
During 2011, ISO 14001 audits
continued.
The total cost to carry them out was
approximately $ 6.500.
Environmental investments during
2011
During 2011, US$ 400.000 was invested
at the wire treatment plant.
Public - Private Sector Interaction
We continued participating in the Slag
Recovery Commission (CIMPAR,
Comisión de recuperación de escorias)
in order to identify new applications for
electric furnace slag
We participated in Environmental Legal
Update Breakfast Meetings and
Environment Workshops organized by
CIMPAR. Acindar was acknowledged for
its participation as an active member of
the Organizing Committee.
Through CIMPAR, we took part in the
Environmental Management Technical
Committee of the Province of Santa Fe
for the assessment of changes to the
environmental regulations in the province.
We are members, together with other
10 companies in the area, of the Air
Quality Group in San Nicolás whose aim
is to continuously monitor the air quality
in the community.
Rosario
Long Steels
Rosario Long Steels
Environmental Management
During 2011, The Environmental
Performance Index (EPI) was estimated
at Navarro Plant in Rosario. Issues to
address were detected and tasks and
actions to reverse poor performance
were scheduled.
In 2011, we continued monitoring the
closing index for Potential Impact
Situations (PIS) at the plant to avoid or
resolve the environmental impact caused
by industrial activity.
During the committee meetings held in
2011, we discussed issues related to day
to day environmental management at the
plant: identifying situations, saving natural
resources, drills, emergencies, waste
management, etc.
Trainings were organized during the year,
and the following topics were addressed:
Waste management
36
Environmental and environment
aspects-impacts
Emergency responses
Recovery of waste oils
All counted with the participation of our own
staff and contractors' personnel from the
different operating shifts.
Rosario Long Steels
66,0
0,125
64,0
0,120
(MWh/Tn)
(Nm3/Tn)
Rosario Long Steels
62,0
60,0
58,0
2010
Long Steels Rosario
Waste Management
Rosario Long Steels
Specific Consumption of Water
2011
2010
Total
Generado
Residuos
Domiciliarios
3,5
3,0
(Nm3/Tn)
(MWh/Tn)
2011
There was an increase in power consumption that is closely
related to the increase in plant production.
1000
800
600
2,5
2,0
1,5
400
200
2010
0,090
The gas consumption indicator has decreased mainly due
to working schedules. In 2010, work was organized in 4
complete shifts. In 2011, it was organized in 4 shifts during
2 quarters and it was organized in 3 shifts during 1 quarter.
1200
0,105
0,095
2011
52,0
1400
0,110
0,100
56,0
54,0
1,115
1,0
Residuos
Peligrosos
0,5
0
2009
2010
2011
0,0
Slight increase due to the increase in production that implies
efficient use of water.
There was a decrease in the generation of household-like
waste which is disposed into an external landfill. This is due
to the control of waste leaving the plant to recover as much
waste as possible.
Furthermore, we recovered 2510 tons of scale in 2011, for
the cement industry.
37
San Nicolás
Long Steels
San Nicolás Long Steels
As well as in the other plants that belong
to Acindar Grupo ArcelorMittal, the
Environmental Management (EMI) and
Potential Impact Situations (PIS) indicators
were implemented.
During the committee meetings held in
2011, we discussed issues related to day
to day environmental management at the
plant: identifying situations, saving natural
resources, drills, emergencies, waste
management, etc.
New waste practices were implemented
in San Nicolás plants in order to recover
materials previously sent to final disposal.
One drill was carried out in 2011 with the
participation of all plants MA Analysts:
Final liquid effluent discharge to the
receiving body due to overflow of the
pond.
Good environmental practices
Company employees submitted a project related to “Non-Recoverable
Waste Reduction in San Nicolás Long Steels Plant”.
Identified problems
Failure to meet non-recoverable
waste target of 2.8 Kg/Tab.
High costs for waste disposal
Proposed goals
Reduce non-recoverable waste
generation below 2.8 kg/tab by
the end of July.
Reduce costs of industrial waste
disposal in the landfill.
38
Achievements
Scale recovered for sale.
Oxycut slag was not disposed in
the landfill completely recovering
it with the sized scrap.
Since this improvement was
implemented, we have saved
$ 55.000 in industrial waste
disposal in the landfill.
We have saved about $ 26.500 in
disposal and treatment of used oils
and fats.
70,0
0,1080
60,0
0,1060
(MWh/Tn)
(Nm3/Tn)
50,0
40,0
30,0
0,1020
0,1000
0,0980
20,0
10,0
1,1040
2010
0,0960
2011
2010
2011
0,0940
00,0
There was a reduction in natural gas consumption in 2011
because the furnace heat exchanger, which improves
performance.
We observed good results in the specific consumption of
electric power in 2011, hand in hand with an increase in the
production of the Rolling Mill.
Waste Management
(MWh/Tn)
7000
Recovered
Waste
(scale)
6000
Total
Generated
5000
4000
3000
2000
1000
Household
Waste
Industrial
Waste
Especial
Waste
2011
2010
0
There was a significant improvement in waste management in 2011 due to the scale that was being stored externally in the landfill
and was recovered, increasing then the percentage of waste recovery compared to 2010.
39
San Nicolás
Structurals Shapes
San Nicolás Structurals Shapes
Specific consumption of Electric Power
160.0
0,3500
140,0
0,3400
(MWh/Tn)
(Nm3/Tn)
120,0
100,0
80,0
60,0
2010
2011
0,3300
0,3200
0,3100
0,3000
40,0
0,2900
20,0
0,2800
Specific consumption was higher than at other plants because
the plant operates 1 shift, the furnace cannot be turned off
due to operating conditions.
2010
2011
Specific consumption of electric power decreased because
the Rolling Mill started operating in June 2010 that explains
the high consumption of electric power.
(MWh/Tn)
Waste Management
1000
Total
Generated
Industrial
Waste
800
Recovered
Waste
(scale)
600
400
200
Household
Waste
Eespecial
Waste
2011
2010
0
There has been improvement in industrial waste disposal if we compare 2010 and 2011. This is because the waste in 2010 was taken
to the landfill while in 2011 scale was recovered for sale.
40
Meshes and Nails
Villa Mercedes Plant - San Luis
Environmental performance
The fuel tank was adapted for the
National Energy Department audit
to obtain approval for the use of the
facilities.
Biodegradable industrial degreasers
were studied and tried as a phase of
the plan to replace kerosene in
mechanical cleaning.
As a preventive action, a secondary
chamber was installed to prevent
overflows of the compartment of
water with hydrocarbon coming from
the condensation discharge of the
compressed air circuit.
Consumption and waste generated at Meshes and Nails Plant
Concept
Electric Power Consumption - Nails
Electric Power Consumption - Meshes
Natural Gas Consumption
Gas Oil Consumption
Lubricating Oil Consumption - Nails
Cardboard Waste
Common Waste
Cloth with Oil Waste
Scale Waste
Unit of measurement
Kwh / tn produced
Kwh / tn produced
m3 / tn produced
Lt / tn produced
Lt / tn produced
kg / tn produced
kg / tn produced
kg / tn produced
kg / tn produced
2010
108
100
1,8
1,9
0,8
0,8
3
0,94
7,9
2011
106,52
99,42
2,29
2,0
0,8
0,7
2,03
0,86
6,7
If we compare 2010 and 2011 results, indicators show an improvement, except for gas and gas oil consumption.
Gas consumption increased since more heaters were installed for the staff. Gas oil consumption increased because a forklift
truck was added to the existing fleet.
41
Wire Business
Tablada Plant
Water and effluents
During 2011, industrial effluent flows
were monitored. Having this information
was very important to identify
opportunities for improvement and to
continue working towards continuous
improvement.
The most significant improvements
were made to the Galvanizing Line
and the facilities linked to the Closed
Cooling Circuit, achieving more efficient
use of water resources.
Consumption
2009
61137
74.6
7.9
12.9
452.1
Drawn (Ton)
Consumption of natural gas (Nm3/Ton)
Consumption of water (m3/Ton)
Consumption of hydrochloric acid (Kg/Ton)
Consumption of Electric Power (MWh/Ton)
2010
77533
71.4
7.3
12.6
438.0
2011
87597
52.1
6.5
12.8
377
The indicators results showed a more efficient use of resources. Despite a production increase of 13%, we can observe reductions of
27% in natural gas, 11% in water consumption and 14% in electric power. Hydrochloric Acid maintains last year’s values..
During the year, training sessions
were held and consisted of
information talks in the workplace.
In addition to the training plan
scheduled, at the end of October
2011, students of Environmental
Management visited Tablada Plant.
At noon, they toured the facilities
and learned about the plant’s
production processes and
environmental management.
Wire Plant
Waste Management
25
Generation
20
(Kg/Tn)
Trainings
15
External
Recovery
10
5
18,2
0
20,2
7,7
7,2
Discharge
and elimination
10,5
13,0
2011
2010
In 2011, there was an increase in the volume of non recoverable waste compared to
previous years. The reason is that, during the year, non-routine tasks related to the
maintenance of facilities and general areas of the plant were scheduled and performed.
42
Enriching our
communities
Our bond with our
community
Children's day
On Sunday, August 21, Acindar
Grupo ArcelorMittal, together
with Canal 4, Radio Litoral,
Radio Frecuencia Show and the
Municipality of Villa Constitución
organized a very special Children’s
Day celebration in which the
whole community could participate.
Fundación Acindar also took part in this
celebration with its program called "The
Magic of Reading". Children could have
fun and learn while reading short stories
and different kinds of books.
PERFORMANCES IN THE FORMER
CILSA FACTORY SITE
Let’s Play Circus
Rosario Urban Art School Performance
Songs in Motion, by The Jumping Frijoles band
Carolina and her guitar, from Villa Constitución
In the former CILSA factory site, different
performances were were organized for
the whole family (See the chart).
Aiming at a safer waste
control management
A practice that can save
lives
This initiative generated a great opportunity
for interaction, fun and games. Thousands
of children from Villa Constitución shared
unforgettable moments with their families.
In May, aiming at stressing the
importance of protecting the
environment, Acindar Grupo
ArcelorMittal organized a talk
on toxic waste management.
The Medical Service team delivered
a talk on heart risk prevention and
basic CPR (cardiopulmonary
resuscitation) at Club Sacachispas
in Villa Constitución
Local suppliers and members of Villa
Constitución Industrial Chamber
participated in this talk. Elisabet Williams,
Environment Area Manager, provided the
theoretical background for this activity.
The talk was especially intended for gym
teachers and people in charge of sport
activities from Villa Constitución and the
neighboring towns.
The talk was attended by more than 70 gym
teachers and coaches from Villa Constitución
community.
“This activity was organized at the request
of Constitución County Chamber of Industry
(CIDECON, Cámara de Industria del
Departamento Constitución), which asked
Acindar to guide its members as regards
toxic waste management," explained
Williams.
The meeting took place at Acindar’s
Auditorium in Villa Constitución. Present
at the meeting were twenty two
representatives of Acindar’s suppliers and
CIDECON's members.
46
It began with a theoretical explanation on the
implications of a cardiorespiratory arrest, its
causes and risk factors, and then, by means
of practical exercises, the participants were
taught how to perform CPR and how to apply
first aid techniques (mouth-to-mouth
resuscitation and cardiac massage).
Fabián Boccardo and Ignacio Luna from the
Occupational Health Area Management were in
charge of the talk.
More than 500 runners took
part in the marathon
Participation of the
community in the second
Acindar Marathon
On Sunday, September 11, Villa
Constitución enjoyed the Second
10 km Marathon organized by
Acindar Grupo ArcelorMittal.
On Sunday, September 11, Villa
Constitución enjoyed the Second 10 km
Marathon organized by Acindar Grupo
ArcelorMittal. At the end of the races, the
winners received their prizes from José
Giraudo, General Director; Marco Antonio
Bosco, Executive Director of the Iron and
Steel Business; and Horacio Vaquié, Villa
Constitución Mayor.
"This is a good example of what growing, setting
yourself a goal and going for it means."
explained Giraudo at the prize-giving ceremony.
In turn, Marco Antonio Bosco thanked the high level of engagement of
Villa Constitución residents.
"I would like to thank not only those who have run
but also those who supported them all the time."
47
Support programmes for labor
inclusion into society
"Young people with
future": Commitment
and opportunities for
everyone
"Young people with future" is a program
intending unemployed young people to
acquire working skills by means of in-class
and on-service training focusing especially
on education as a tool to achieve social
inclusion.
Four years ago, Acindar ArcelorMittal
group participated in this programme,
which enabled 13 young people to
have training in different industrial and
administrative sectors in Acindar Tablada
in 2011.
“Young people with future” is the result
of the collaborative effort of the Ministry
of Labour, Acindar Grupo ArcelorMittal
and the Steel Workers’ Union (UOM,
Unión Obrera Metalúrgica, La Matanza
branch) in an attempt to help adolescents
with no work experience to find a position
in the job market. In addition to that, the
programme encourages these young
people to complete their secondary
school education.
"We all win with the implementation of
this programme: Children win because
they can get working experience in a
company such as ours, and the community
they are part of and their tutors win as
they get enriched when training them
because they are full of energy and willing
to learn," said Gerardo Cricco, Acindar's
Human Resources Manager.
Technical schools
development programme
The goal of this project is to use Tax Credit to
fund educational projects with the following
purposes:
Strengthen secondary school and higher
non university technical education so as
to increase the young graduates’
possibilities to get a job.
Contribute to the professional training
and development of the teachers
working at those institutions.
"Building new perspectives"
programme
Facilitate the equipment of technical
schools located near Acindar Grupo
ArcelorMittal premises.
The Club of Companies Committed to Disability
(CEC, Club de Empresas Comprometidas con la
Discapacidad) started to work in Buenos Aires
in 2004 in response to a call from the National
Ministry of Labour (Ministerio de Trabajo de la
Nación) aimed at promoting the labour and
social inclusion of disabled people.
Promote social development by means
of training unemployed people to do
manual trades.
26 schools
In 2011, 26 schools were
given funding for their
projects.
During 2011, Acindar ArcelorMittal Group
took active part in the CEC both in Buenos
Aires and Rosario.
Its most important achievements was the
consolidation of a work team integrated by
private companies, NGOs and the Provincial
and Municipal Governments. The CEC annual
meeting took place in September.
At the meeting, several companies from
private and public sectors as well as NGOs
shared their experience with the community.
48
Acindar Foundation
Education
Economic aid scholarships
Since 1997, economic aid scholarships have
been granted to acknowledge those young
people who make an effort to progress and
to persevere with their studies.
During 2011, 78 applications were accepted
and the corresponding scholarships were
granted. About 74% of the applicants
selected had obtained the scholarship in the
precedent years. The students who received
the scholarships managed to pass the
subjects in their school syllabus.
Scholarships distribution per
locations and per education level
Location
Scholarships
Villa Constitución
40
La Tablada
8
Villa Mercedes
15
San Nicolás
8
Rosario
6
Beccar
1
Total
78
School tutoring classes
Acindar Foundation created the programme
to address mainly two worrying problems:
school desertion and grade repetition.
The programme is currently performed
by Villa Constitución Town Council,
through its Culture Department.
Language and Mathematics classes
were delivered for 167 children
attending 2nd to 7th grade.
Advice workshops were organized for
parents.
We managed to continue with the
reading comprehension skills project.
2011 Fundation Acindar performance
58
programmes and projects.
49.350
the participation of children, young
people and adults.
140
schools and institutions involved in the
programmes and projects.
49
Altogether, 18 schools, 29 teachers and 662 students
participated of "The magic of reading" programme.
The magic of reading
It has been found out that children in
primary schools have serious reading
comprehension problems and find it very
difficult to restate what they have read
in their own words.
In an attempt to promote children’s
contact with books and to develop their
reading habits, the programme started
with a theatre musical play called "Books,
a Story of Pages That Keep Moving",
which is part of the Reading National Plan
implemented by the National Ministry of
Education. Each of the students enrolled
in the programme received the book called
The Magic City by E. Nesbit and the new
book called Passengers, especially designed
for the programme by Acindar Foundation.
Altogether, 18 schools, 29 teachers and
662 students participated.
"The magic of reading" library continued
being available for the company employees’
family members.
96 children and adolescents participated in
the programme, and 331 books were
borrowed from the library.
Education Projects
Contest
21
educational projects.
4.880
students.
Educational projects
contest
The programme encourages schools to
try out new educational approaches so
as to maximize their learning quality.
The 21 primary and secondary schools
projects selected in 2010 were
successfully implemented.
About 4880 students and 527 teachers
participated in the programme.
527
teachers.
Teaching enhancement
clinics
The aim of this programme is that university
and secondary school teachers get together
to review teaching practices in Mathematics,
Physics and Chemistry.
Together with San Nicolás Education
Supervision, the foundation carried out the
programme called Building Strategies to
Strengthen Mathematics Teaching and
Learning.
Magister Carina Pacini was in charge of the
workshops, in which 21 4th-grade teachers
from 19 different schools in San Nicolás
participated.
50
Environment
The planet is your home,
take care of it
With a view to encouraging environmental
awareness, we continued working with
company employees’ family members and
with students from 6th grade from Villa
Constitución, La Tablada, San Nicolás and
Villa Mercedes.
Community and
environment
Students from N° 466 General Manuel
Nicolás Savio School in Rosario city were
invited to take part in the Argentinean
Continual Improvement Society (SAMECO,
Sociedad Argentina de Mejora Continua)
annual meeting and to present their project
called "Hibernating for Improvement".
The 5 students and 6 teachers who
participated also presented these
initiatives in the Technological
Promotion Seminar (SITEC, Seminario
de Incentivación Tecnológica), which
took place in Acindar last December.
22 workshops about the environment
were organised and coordinated by
volunteers from Acindar’s staff.
Trees were planted in San Nicolás and
Villa Constitución.
33 schools, 61 teachers and 1356
students took part in these initiatives.
Company contractors and employees’
children and other family members aged
5-13 could participate in the internal
implementation of the programme.
A children’s works competition was
organized and special educational
material was especially designed for it.
This material included a magazine on
ways to protect the environment with
plenty of advice on this matter.
Plastic and paper
recycling
In 2011, 18.160 kg of paper and 630 kg
of plastic lids were donated to Hospital
Garrahan, which assists about 5,000
children annually.
Health
Healthy habits
If we take care of our
eyes, we learn better
Jointly with Zambrano Foundation,
activities aimed at promoting eye health
took place in the 1st grade of 9 primary
schools from Villa Constitución, 9 from
San Nicolás and 9 from La Tablada.
As part of the programme, manuals
designed to develop literacy by means
of visual health education were given to
all the participants.
As a result of the prevention activities
performed, teachers were able to identify
239 students with different visual
problems, who were later on checked
by an eye doctor. In some cases, it was
possible to spot the children’s need of
glasses, which were provided to all of
them. A total number of 1,144 students
and 53 teachers participated in the
programme.
Healthy habits are promoted by means of an
educational programme for 7th grade of
primary schools and 1st year of secondary
schools in Villa Constitución. The aim of the
programme is to raise awareness of problems
such as nutritional disorders, abuse of alcohol,
tobacco and other substances at an early age.
Altogether, 51 schools, 98 teachers
and 2,112 students participated
Let’s increase safety
In 2011 edition, the foundation continued
working with schools in Villa Constitución,
La Tablada, San Nicolás and Villa Mercedes,
carrying out activities aimed at raising
awareness in terms of health and safety
to contribute to a solid and wide education
enabling children, through its multiplying
effect, to grow in safer places and to learn
the value of safety to interact in their
community in a responsible and helping way.
Multipliers and squad members of Acindar
ArcelorMittal Group volunteered to give
34 safety workshops, where they shared
actual experiences with children,
maximizing their learning.
Health education
Altogether, 35 schools, 70 teachers,
1,546 students and 33 volunteers from
Acindar ArcelorMittal Group were directly
involved.
This programme was planned in alliance
with the Infectology Studies Centre
Foundation (FUNCEI, Fundación Centro
de Estudios Infectológicos), directed by
Dr. Daniel Stamboulian. Aimed at 2nd and
3rd grade children, and carried out for the
fourth consecutive year, it was based on
the promotion of simple health self-care
rules. The activities took place in Villa
Constitución, San Nicolás and La Tablada,
and as a closing, a school works competition
was organized for students to express the
health care concepts they learned.
52
Altogether, 19 schools, 44 teachers and
1.195 students participated.
Social Promotion
Support to social
organization projects
Strengthening of
social organizations
management
As part of this programme, communities
with shortage of economic or technical
resources to carry out their own projects
are supported.
Working together with Acindar Foundation,
the organization called “Aportes” developed
an induction programme for new volunteers
to provide technical support to social
organizations that need to improve their
tools and management processes.
29 applications were submitted, out
of which 8 were chosen.
Donations
Acindar Foundation provided a
link between Acindar ArcelorMittal
Group and several institutions in the
community
The company discharged 55 computers
and fitted them out for them to be in
perfect conditions to be donated to 8
schools and 8 institutions.
17 new participants joined this initiative.
Some discharged equipment was handed
in to School No. 669, "Escuela Técnica", in
Villa Constitución, for the students to use
them in PC repair practices.
Altogether, 3,850 people benefited
from this programme.
Stationery was donated to an organization
called Manos Abiertas, which benefited
160 children and 214 young people.
Let’s move forward programme
The main goal of the programme,
carried out in alliance with Ashoka,
is that young people complement
their formal education acquiring skills
necessary to get a position in the job
market.
Altogether, 24 young people, with
the consultancy of 5 adults, led these
projects, which reached about 7,000
direct beneficiaries.
53
On the occasion of the Children’s Day
celebration, 60 pencil cases with personal
hygiene items inside were donated as part
of the "Health Education" programme, for
children who attend Escuela Bíblica “Caritas
Felices”, which belongs to the Iglesia
Profética Apostólica Nueva Visión Puerta
de Paz, in Villa Mercedes, San Luis Province.
.
Transparent
governance
Institutional presence
Activities performed at
different Institutions and
Business Associations
In 2011, Acindar ArcelorMittal
Group continued participating
in the different associations
and chambers of business
environment
Through both commissions and executive
bodies, the company actively holds
activities encouraging the creation of
a space for dialogue, where topics of
common importance are discussed.
This kind of participation makes it possible
to create a learning space between the
company and the different interest
groups involved.
Corporate Citizenship Award granted by AmCham “Addictions Prevention Program"
In addition, in 2011 Acindar ArcelorMittal
Group continued developing activities
aimed at promoting social responsible
participation in different fields.
We have been actively participating as
members of:
United Nations Global Compact in
Argentina.
Network of Young People with Future
(Ministry of Labor and Social Security
MTySSN)
Club of Committed Companies (Club
de Empresas Comprometidas)
Decent Work Tripartite and Quadripartite
Advisory Committees - Ministry of Labor
and Social Security of Santa Fe Province
(Comisión Tripartita y Cuatripartita de
Trabajo Decente – MTYSSSFE).
"Recognition by Acindar ArcelorMittal Group for participation in board Covenant Global 2010-2011 ".
56
The Wire Fencers National
Championship Regional Rounds
To share the event with as many wire
fencers as possible and promote the
acknowledgement of this profession so
important for the Argentine countryside,
Acindar ArcelorMittal Group decided the
Wire Fencers National Championship
would have regional rounds.
Thanks to the big effort from Acindar
Grupo ArcelorMittal Marketing team,
there were rounds in the provinces of
Chaco and Corrientes and the first two
positions of those contests classified
directly to the semifinals that will take
place in Expoagro. Providing full support
Expoagro
to the contestants for them to participate
in Expoagro was another challenge, while
Already a classic in the country’s most
important open field agricultural exhibition, attempting to achieve the greatest
Acindar ArcelorMittal Group organized the challenge: levelling the knowledge of all
6th National Championship of Wire Fencers. wire fencers participating in the rounds
The aim of this initiative is to acknowledge and the championship by training them
on this occupation best practices.
and raise public awareness of this craft
Moreover, the entire team from Acindar
while sharing with the participants the
Grupo ArcelorMittal that works with the
innovation and technology applied to the
products that lead the agricultural market. wire fencers makes a strong emphasis on
the prevention of accidents in this
Twenty-four pairs of wire fencers from
occupation, prioritizing the use of safety
Santa Fe, Buenos Aires, Mendoza, Entre
elements for each step of the job.
Ríos, Córdoba and La Pampa participated
Presence at events and
exhibitions
EI Naval
Answering to the needs of the shipbuilding
industry, Acindar ArcelorMittal Group
attended the III Encuentro Internacional de
la Industria Naval - EI Naval (3rd International
Meeting of the Shipbuilding Industry) in
Mar del Plata, in May 2011.
Acindar presented its products to the market
and also offered a technical presentation
about steel sheet piling and its use in port
Batimat
Each year, the products and services
Acindar Grupo ArcelorMittal offers to the
construction market set us apart from the
competition. When deciding the steel
supplier for high-caliber works, our pursuit
of advancement and technology makes
us a strong choice.
To support the development of the
construction market, Acindar ArcelorMittal
Group attended the 18th edition of Batimat,
International Exhibition of Construction
and Housing, which took place from May
31 to June 4 at La Rural in Palermo, Buenos
Aires.
In a modern two-story stand, attendees
learned about our entire range of products
and services for construction, which each
year adds services and innovations as the
reinforcing bar trébol design, a development
of Acindar Grupo ArcelorMittal which
provides differential benefits to the Steel
Cut and Bent service.
Costumers
We continue traveling along the
path to an efficient company.
In 2011, Acindar ArcelorMittal
consolidated the activities to fully
optimize all production processes
and services to customers
Evolution of overall satisfaction with Acindar
Positive percentages (2004-2011)
The SCM (Supply Chain Management)
and CRM (Customer Relationship
Management) modules were launched
together with the OTIF Project (On
Time In Full).
This new project involves different
areas of Acindar ArcelorMittal Group
and consists of the implementation of
a delivery measurement system which
reflects the level of service provided
to customers at the point of delivery.
Acindar ArcelorMittal Group is on its
journey to an increasingly effective
company and this is achieved through
state-of-the–art facilities, a trained
sales and technical staff, and the
implementation of these and other
projects aimed at providing solutions
that our customers need in order to
face a dynamic and changing market.
90
92
94
97
85
87
88
93
2004
2005
2006
2007
2008
2009
2010
2011
Source Acindar 331 customers, in October 2012. Datos Claros / www.datosclaros.com
Suppliers
SPM
During 2011, the Purchasing and Logistics
Direction, with the help of 200 end users
and authorities in the field, organized the
first Supplier Performance Management
(SPM) campaign and over 230 suppliers
were assessed.
The results of this process helped us
identify strengths and improvement
opportunities.
We created a portal for the carriers to
avoid problems when trucks enter the
plant and to offer an efficient and faster
management system to users.
Carrier Manual: it contains all company
policies to improve cost, quality and
service efficiency.
A practical Guide was distributed to Freight
Drivers.
Our purchasing team, users and suppliers
have been working in more than 50
action plans to overcome weaknesses and
continue growing together.
New Campaigns for Drivers Safety were
conducted. Information leaflets were
distributed and those involved were
instructed on compliance with Public and
Acindar's Safety Poliies.
Safety for carriers
The Safety Golden Rules for Carriers were
established
From the Logistics Safety area, a series of
actions were designed and implemented
intended to achieve greater motivation and
active participation of those involved and
oriented to Zero Truck Accidents .
An automatic truck taping system was
implemented to eliminate fall risks for
Drivers. It was implemented in Navarro
Plant first to see the results and ensure
the implementation in other plants.
58
Fatality Prevention
Standards
In 2011, Fatality Prevention Standards
(FPS) started being implemented in our
plants in order to incorporate experiences
from ArcelorMittal Group arising from the
analysis of fatal accidents and existing
"teachings” and “good practices”.
Those procedures are available to all
employees from any of the Acindar
ArcelorMittal Group plants. For that
reason, trainings were conducted for
all contractors and carriers involved
in each of the tasks mentioned in the
FPS
Acindar ArcelorMittal Group Suppliers | Year 2011
Total amount of active suppliers
1900
Sector / Pesos
Energy
Metals (Minerals and scrap)
Industrial products
Services and materials
Total
Imported
1.269.660.473
253.604.245
36.881.588
1.560.146.306
National
656.334.370
460.565 146
242.818.210
1.052.730.681
2.412.448.408
Segregation by type of product / service
Energy
Metals (Minerals and scrap)
Industrial Products
Services y materials
17%
44%
12%
27%
OTIF: Reliable deliveries, satisfied customers
One of the priority challenges that the company has taken on as its main business strategy is to maintain a sustainable
relationship with the clients by meeting their delivery requirements.
During 2011, the On Time In Full (OTIF) project was developed and it involves different areas of Acindar ArcelorMittal Group
and consists of implementing a delivery measurement system which reflects the level of service provided to customers at the
point of delivery.
How does it work?
OTIF compares the promised delivery date in SAP and the actual lead time, takes complaints into account and provides
information on the level of compliance by product line, regions, etc. Control of transport from Acindar ArcelorMittal Group
plants is carried out through three satellite companies. Each delivery is tracked, thus obtaining information on the actual
date and time of delivery.
59
Reciprocal Guarantee
Association
Since 2006, Acindar Pymes has provided
securities for more than ARS 1100m, mainly
assigned to the value chain (customers
and suppliers).
By the end of 2011, the number of partners
participating in the SGR reached 548.
They were mainly customers and suppliers
of Acindar’s IAASA, and third parties which
do not belong to the value chain.
During this year, Acindar Pymes S.G.R
continued being a referent and leader
within the SGR sector in Argentina.
During 2011, there were 68 new members,
and operations for more than AR$ 338,9 m
were endorsed.
As an example, among the actions taken
by Reciprocal Guarantee Association to
support Acindar’s value chain, we can
Code of ethics
mention the increase of the Guarantee
Fund in ARS 40,000,000 in order to
support the growth and financial needs
being experienced by the SMEs in our
country.
Among the Reciprocal Guarantee
Association projects for 2012, we can
mention:
To maintain our leadership as the No 1
private Reciprocal Guarantee Association
in the market of checks discounts.
Increase our support to Acindar IAASA's
suppliers.
To make strategic partnerships with
other value chains in order to reach
more SMEs replicating the successful
model of Acindar in other sectors of
the economy.
This was the distribution according to the type of credit and beneficiary:
Type of product
ARS millon
%
230.50
68
Loans
73,80
22
Commercial securities
33.00
10
1.70
0
338.9
100
Discount CPD
Negotiable bons
Total
Acindar ArcelorMittal Group is known for
the honesty and integrity in its management
and directing practices as well as in all of its
business operations.
It is of fundamental importance to the
company, its subsidiaries, and to each of us
to protect such reputation and to maintain
the relationship of trust with all the people
and institutions we do business with.
The Code applies to all officers, executives
and employees of Acindar ArcelorMittal
Group and its subsidiaries.
It has been created in order to help us
understand which our legal and ethical
obligations are when conducting business.
It is available on the company Intranet
and the company corporate website:
hwww.acindar.com.ar/pdf/codConductaAMAr.pdf
ArcelorMittal Policy on Reports of Illegal
Behaviour within the Company, Competition
and Antitrust Law, Anti-corruption Guidelines,
and the Code of Conduct concerning the
use of ArcelorMittal's confidential information
are also available in the same website.
ArcelorMittal Policy on reports of illegal behaviour within the company
If an employee suspects some potential
dishonest practice which might be
included within the scope of this Report
Process of illegal behaviour in the
company, he/she should report it first
to his/her superior, to a member of the
management, to the Manager of Legal
Affairs or to the head of Internal Audit
Department. However, if the employee
is concerned about the response given
or the lack of response, or if he is not
able to talk to his/her leader or one of
the other persons mentioned above,
he/she will be able to turn to the
Report Process of an illegal behaviour
within the company.
60
Reports can be presented either by
making an internal call to 3223, to
0800-444-1415 or by sending an
e-mail to:
hotmailargentina@acindar.com.ar.
GRI Indicators Table
GRI indicators
Global Pact Indicator Page
Principles Status
1. Vision and strategy
1.1
1.2
Statement from chief executive officer about the importance of sustainability for the organization
and its strategy
Description of key impacts, risks and opportunities
O
O
2, 3
2, 3
O
O
O
O
O
O
O
O
O
O
Cover
6
5, 6
5, 6
5, 6
Note 1
6
4,14
2, 3
56
O
O
O
O
O
O
Cover
2
2
67
2, 3
2, 3, 7
O
O
O
O
2, 3, 7
2, 3, 7
Note 2
Note 2
O
Note 2
O
62
O
Note 3
2. Profile
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
Organizational profile
Name of the organization
Major brands, products and/or services
Organizational structure
Location of organization's headquarters
Countries where the organization operates
Nature of ownership and legal form
Markets served
Scale of the reporting organization
Significant changes during the reporting period regarding size, structure or ownership of the organization
Awards received in reporting period
3. Report Parameters
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
Report Profile
Reporting period
Date of most recent previous report
Reporting cycle
Contact point for questions regarding the report
Process for defining report content
Boundary of the report
Scope and Boundary of the Report
State any specific limitations on the scope or boundary of the report
Aspects that may affect comparison of information
Data measurement techniques to elaborate indicators
Effect of any re-statements of information provided in earlier reports
Significant changes from previous reporting periods in the scope, boundary, or measurement
methods applied in the report
GRI Content Index
GRI table of contents
Verification
Policy and current practice with regard external assurance for the report
4. Governance, Commitments and Engagement with Stakeholders
4.1
4.2
Governance structure of the organization
Indicate if the chair of the highest governance body is also an executive officer
O
O
Note 4
Note 5
4.3
State the numbers of members of the highest governance body that are independent
and/or non-executive members
O
Note 6
4.4
Mechanisms for shareholders and employees to provide recommendations or direction
to the highest governance body
Linkage between compensation and the organization’s performance for members of the highest
governance body, including social and environmental performance
O
60
O
Note 7
4.5
62
GRI indicators
Principles Status
4. Governance, Commitments and Engagement with Stakeholders
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
Process of the highest governance body to ensure conflicts of interest are avoided
Process for determining required qualifications and expertise of the members of the highest
governance body in relation with sustainability
Mission, values and codes of conduct statements
Process of the highest governing body for overseeing the organization’s identification and
management of economic, environmental and social performance
Process for evaluating the performance of the highest governance body, in particular,
the economic, environmental and social
Explanation of whether and how the precautionary approach or principle is addressed by the organization
Externally developed, social, environmental and social principles or programmes
Significant memberships in associations (such as sectors associations) and/or national and international
associations
List of stakeholder groups engaged by the organization
Basis for identification and selection of stakeholders to engage
Approaches to stakeholder engagement
Key issues and concerns that have been raised through stakeholder engagement and how the
organization has responded to these
O
18, 19
O
O
Note 8
5
O
Note 7
O
O
O
Note 7
O
O
O
O
56
7, 2-3
Note 9
7, 2-3
O
7, 2-3
8-9
8, 9; 26-42; 46-52
Economic Sustainability Indicators
EC1
EC2
Economic value generated and distributed
Financial implications and other risks and opportunities for the organization due to climate change
O
O
EC3
EC4
EC5
EC6
EC7
EC8
EC9
Coverage of the organization’s defined benefit plan obligations
Significant financial assistance received from governments
Range of ratios of standard entry-level wage compared to local minimum wage
Policy, practices and proportion of spending on locally-based suppliers
Procedures for local hiring and proportion of senior management hired from the local community
Development and impact of infrastructure investments and services provided primarily for public benefit
Understanding and describing significant indirect economic impacts, including the extent of impacts
O
O
O
O
O
N/A
O
Note 10
Note 11
Note 12
Note 13
58-59
Note 7
2, 3, 8-9
Social Sustainability Indicators: Labour Practices and Decent Work
LA1
LA2
LA3
LA4
LA5
LA6
LA7
LA8
LA9
LA10
LA11
LA12
Employment
Total workforce by employment type, employment contract and region
Total number and rate of employee turnover by age group, gender and region
Benefits provided to full-time employees, by major operations
Labour/Management Relations
Percentage of employees covered by collective bargaining
Minimum notice period(s) regarding significant operational changes
Health and Safety at Work
Percentage of total workforce represented in formal joint management-worker health and safety committees.
Rates of absenteeism, occupational diseases, lost days, and number of work-related fatalities
Education, training, counseling, prevention, and risk-control programs in place to assist workforce
members, regarding serious diseases
Health and safety topics covered in formal agreements with trade unions
Training and Education
Average hours of training per year per employee by employee category
Programs for skills management and lifelong learning that support the continued employability of employees
Percentage of employees receiving regular performance and career development reviews
63
O
O
O
14
14
15
O
O
14
Note 15
O
O
12
21
O
O
21-22
12
O
O
O
18
18
18, 19-20
GRI indicators
Principles Status
Social Sustainability Indicators: Labour Practices and Decent Work
LA13
LA14
Diversity and Equal Opportunity
Composition of governance bodies and breakdown of employees per category according to gender,
age group and minority group membership
Ratio of basic salary of men to women by employee category
O
O
14
16
O
Note 17
O
O
N/R
Note 18
O
Note 19
O
12
O
Note 20
O
Note 21
O
Note 22
O
Note 23
O
O
N/R
Note 24
O
N/R
O
O
Note 25
57-58
O
O
57-58
Note 26
O
Note 27
O
Note 28
O
O
30
30-31
O
O
O
O
O
31
32
32
28, 36, 38, 41-42
28, 36, 38. 41-42
Social Performance Indicators: Human Rights
HR8
Investment and Procurement Practices
Percentage and total number of significant investment agreements including human rights clauses
Percentage of the main distributors and contractors who have undergone screening on human
rights and actions taken
Total hours of employee training on policies and procedures related to human rights
Non-Discrimination
Total number of discrimination incidents and actions taken
Freedom of Association and Collective Bargaining
Activities against freedom of association and actions taken
Child Labour
Activities identified as having significant risk for incidents of child labour and corrective actions
Forced Labour
Activities identified as having significant risk for incidents of forced labour and corrective actions
Security Practices
Percentage of security personnel trained in human rights
HR9
Indigenous Rights
Total number of incidents related to the infringement of indigenous rights and actions taken
HR1
HR2
HR3
HR4
HR5
HR6
HR7
Social Performance Indicators: Product Responsibility
PR1
PR2
PR3
PR4
PR5
PR6
PR7
PR8
PR9
Stages of the product life cycle and services assessed in terms of customers's health and safety
Total number of incidents of non-compliance with the regulations or with voluntary codes
Product and Service Labelling
Type of product and service information required by procedures, and percentage of products and
services subject to such information requirements
Total number of incidents of non-compliance and relating to the information and labelling of products
and services
Practices related to customer satisfaction
Marketing Communications
Programs for adherence to laws, standards and voluntary codes related to marketing communications
Number of incidents of non-compliance with regulations concerning marketing communications
Customer Privacy
Total number of substantiated complaints regarding privacy and breaches of customer data
Compliance
Monetary value of fines for non-compliance with laws and regulations concerning provision and use
of products and services
Environmental Sustainability Indicators
Materials
EN1
EN2
EN3
EN4
EN5
EN6
EN7
Materials used by weight or volume
Percentage of materials used that are recycled input materials
Energy
Direct energy consumption by primary source
Indirect energy consumption by primary source
Energy saved due to conservation and efficiency improvements
Initiatives to provide energy efficient products and services
Initiatives to reduce energy consumption
64
GRI indicators
EN8
EN9
EN10
EN11
EN12
EN13
EN14
EN15
EN16
EN17
EN18
EN19
EN20
EN21
EN22
EN23
EN24
EN25
EN26
EN27
EN28
EN29
EN30
Principles Status
Water
Total water withdrawal by source
Water sources significantly affected by withdrawal of water
Percentage and total volume of water recycled and reused
Biodiversity
Land owned, leased or managed of high biodiversity value outside protected areas
Impacts in protected natural areas and sites of high biodiversity value outside protected areas
Habitats protected or restored
Strategies, current actions and future plans for managing impacts on biodiversity
Number of species whose habitats are located in areas affected by operations
Emissions, Spills and Waste
Total number of direct and indirect emissions of greenhouse effect gases by weight
Other indirect emissions of greenhouse effect gases by weight
Initiatives to reduce emissions of greenhouse effect gases and achieved reductions
Emissions of ozone-depleting substances by weight
Nitrogen oxides, sulphur oxides, and other significant air emissions by type and weight
Total water discharge by quality and destination
Total weight of waste by type and disposal methods
Total number and volume of the most significant incidental pills
Weight of transported, imported, exported, or treated waste deemed hazardous
Water bodies and related habitats affected by the reporting organization's discharges of water and run-off
Products and Services
Initiatives to mitigate environmental impacts of products and services
Percentage of products sold that are reclaimed at the end of their useful life
Compliance
Monetary value of significant fines and non-monetary sanctions for non-compliance with
environmental laws and regulations
Significant environmental impacts of transporting products and other goods and materials used
Overall
Total environmental protection expenditures and investments by type
O
O
O
32-33
32-33
32-33
O
O
O.
O.
O.
N/R
N/R
N/R
N/R
N/R
O
33
N/A
N/R.
N/R
32-33-34
32-33-34
32-33-34
32-33-34
32-33-34
N/R
O
O
O
O
O
O
O
O
O
O
N/R
N/R
O
O
Note 29
N/R
O
35
O
45-63
O
O
O
2-3
Note 30
Note 31
O
O
56
Note 32
O
Note 33
O
Note 34
Social Performance Indicators: Society
SO1
SO2
SO3
SO4
SO5
SO6
SO7
SO8
Community
Programs and practices that assess and manage the impacts on communities
Corruption
Percentage and total number of business units analyzed for risks related to corruption
Percentage of employees trained in anti-corruption polices and procedures
Actions taken in response to incidents of corruption
Public Policy
Public policy positions and participation in public policy development and lobbying
Financial and in-kind contributions to political parties and related institutions
Anti-competitive Behavior
Total number of legal actions for monopoly practices and behavior against free competition
Compliance
Monetary value of sanctions, fines and total number of non-monetary sanctions for non-compliance
with laws and regulations
References
65
O
Complete
O
Partial
O
Not reported
N/A
Not applicable
Notes
Note 1
The legal form of business organization is a Corporation.
Note 2
Data measurement techniques, basis for calculations and significant changes compared to previous periods are clarified
throughout the report in the indicators tables presented where appropriate.
Note 3
The Sustainability Report has not been subject to external verification.
Note 4
Governance Structure:
- Shareholders’ meeting
- Board of directors
Board members: Arturo T. Acevedo (President) - José I. Giraudo - Horacio Laplacette - Marcos Maia - Augusto Espeschit
de Almeida
Note 5
The President is Mr. Arturo Acevedo - The company’s CEO is José I. Giraudo.
Note 6
Independent directors are required when it is a publicly traded company, which is not the case of Acindar as it is a private company.
Note 7
Measurement of economic and environmental performance is carried out to members of the highest governance body, senior
However, the company complies with the external auditor and audit commission controls required by law.
managers and executives. The possibility of including a social performance measurement is being evaluated.
Note 8
Trainings have been conducted within the scope of the Project “Strengthening the relationship with employees, the community
Note 9
As a basis for the identification and selection of stakeholders, the company conducts an annual general mapping of stakeholders
and the Unions”
at all locations where the company operates and a working programme is established to perform actions with them.
Note 10 Acindar Grupo ArcelorMittal is currently not making quantitave estimates of the financial implications of climate change for the
organization. In the future, we will work on this indicator’s analysis and compliance.
Note 11 Currently we observe the law in all matters relating to workers' retirement. The possibility of having external collaboration of a
consultancy company to expedite retirement cases is being analysed for next year.
Note 12 No significant support was received from the government in 2011
Note 13 All salaries are above the Adjustable Minimum Living Wage.
Note 14 Most positions are occupied by Argentine professionals.
Note 15 Notice periods are provided according to that stated in current Argentine Law.
Note 16 Salaries are defined in terms of position and performance, regardless of gender.
Note 17 The company has no investment agreements that include human rights clauses.
Note 18 In the short and medium term, the company will work to quantify the training hours spent on policies and procedures concerning
aspects of human rights relevant for their activities.
Note 19 During 2011, there were no incidents of discrimination in the company.
Note 20 There was no risk of child labour.
Note 21 There were no activities of non-consensual or forced labour under the reporting period.
Note 22 In the short and medium term, the company will work to train security personnel in human right issues.
Note 23 There are no indigenous populations in the locations where Acindar Grupo ArcelorMittal has its plants.
Note 24 No incidents were reported.
Note 27 There are no legal complaints regarding breaches of privacy or loss of customer data.
Note 28 Acindar Grupo ArcelorMittal has no fines levied for failure to supply and use the organization's products and services.
Note 29 Acindar Grupo ArcelorMittal has no financial penalties and/or non-monetary sanctions for breaches of environmental regulations.
Note 30 Every 3 years the company organizes a training activity for all the employees. During 2011, 95% of the employees to be trained
for that period were trained.
Note 31 There were no reported cases of corruption in the reporting period.
Note 32 The company complies with the laws that regulate contributions to political parties.
Note 33 The company does not have sanctions for actions against free competition or monopoly practices.
Note 34 Customs in Argentina has imposed fines to Acindar for inaccurate statements.
66
Acindar ArcelorMittal Group
Feedback Form Sustainability Report 2011
Through the following feedback form you can send us your comments and suggestions to improve our future reporting
sustainability.
You can contact us by email to: responsabilidadcorporativa@acindar.com.ar, or by post: Acindar ArcelorMittal Group | External
Affairs Manager - Corporate Responsibility Sector | Dr. I. Arieta 4936 - Central building - 1st Floor (B1766DQP) Tablada
Buenos Aires - Argentina.
1. What Stakeholders belongs?
Costumer
Shareholder
Supplier
Employed
Enough
Short
Next to nothing
Comunity
Other (specify)
2. Read this report?
All
3. Did you like the extension of the report?
Short
Appropriate
Long
4. General Review Report
Very Good
Good
Regular
Wrong
Good
Regular
Wrong
4.1 General Review
4.2 Relevance of Information
4.3 Writing and Language
4.4 Desing
5. Comments about the contents of each chapter
Very Good
5.1 Message from the board of directors
5.2 Corporate profile
5.3 Economic and financial performance
5.4 Investing in our people
5.5 Making steel more sustainable
5.6 Enriching our communities
5.7 Transparent governance
5.8 Guidelines GRI and Global Compact
UN
6. What other information would you like to see in the next report?
7. Have any other comments about our sustainability report 2011?
2011 Sustainability Report
Sustainability Reporting
Process 2011
We appreciate the support of our directors
and especially of our President, Arturo Acevedo,
and our CEO, José Giraudo, as well as
the cooperation of each of our employees
that made this publication possible:
Cecilia Barbon, Florencia Magnasco, Mercedes
Salinas, Gabriel Galli, Andrés Romagnoli, Gabriel
Miller, Martín Garibotto, Gabriel Di Paolo, Marina
Bella, Betina Greco, Bárbara Verino, Pablo Arana,
Melina Bustos, Jorge Maristany, Emiliano Daniel
Strzelecki, Tristán Micheletti, Lucas Pagola,
Martín Lenzi, Ariel Sasia, Horacio Monti, Elizabet
Williams, Analía Mehering, Guillermo Traglia,
Nicolás Melo, Ceferino Peralta, Marcelo Serramo,
Carlos Gomez Nardo, Exequiel Arangio, María E.
Baratti , Sebastián Villar Guarino, Jorge Laya and
Roberto Costa.
Special thanks:
We would like to express our sincere gratitude
for their selfless support to the parents and
children on the cover Abril Gardella, Violeta
Pereira Vazquez, Felicitas Villalba and Alejo Cano.
General Coordination
Liliana Otero | Corporate Responsibility
Carlos Vaccaro | External Affair Manager
Desing
Horacio Delfino | Comunication
Acindar
Grupo ArcelorMittal
Provincia de Buenos Aires
Corporate Office
Dr. Ignacio Arieta 4936
B1766DQP Tablada
Buenos Aires Argentina
Acindar Tablada Plant
Dr. Ignacio Arieta 4936
B1766DQP Tablada
Acindar San Nicolás Plant
Paraná 1
2900 San Nicolás
Perfiles Livianos Plant
Av. Rucci 799
2900 San Nicolás
Provincia de Santa Fe
Acindar Villa Constitución Plant
Ruta Provincial 21 N°4855
S2919GBC Villa Constitución
Santa Fe Argentina
Acindar Rosario Plant
Presidente Perón 8000
S2000ACQ Rosario
Santa Fe Argentina
Provincia de San Luis
Acindar Villa Mercedes Plant
Ruta interfábricas 2B - Fte. Golf Club
Parque Industrial Sur
5730 Villa Mercedes
San Luis Argentina
Specials Mesh Plant
Ruta Nacional 7 km 703
5730 Villa Mercedes
San Luis Argentina
Mesh and Nails Plant
Ruta Nac. 148 Ext.Sur km 756
5730 Villa Mercedes
San Luis Argentina

2011 Sustainability Report Acindar ArcelorMittal Group 1

Transcription

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