Tenaris SWOT & PESTLE Analysis

Strength

1. Global leader in steel pipes: Tenaris is a strong contender within the energy industry and has emerged as one of the world’s biggest suppliers of steel pipes for use within the industry. The company boasts of a capability to produce 6.9 million tons of steel pipes annually with operations spaced out between its manufacturing facilities located in 18 countries. The manufacturing units include 25 welded tube mills, 13 seamless rolling mills, 53 heat treatment lines, 103 premium threading lines and 4 electric steel units. The company has a strong service and distribution network spread out across 30 countries. in 2021, the company the majority of its sales (51%) occur within North America, followed by the South America region at 20%. Middle East & Africa closely follows by being responsible for 13% of the company’s overall sales.

2. Strong expertise in the oil and gas infrastructure sector: The company has established its presence in the industry with an operating history of more than 60 years, which translates into solid industrial know how. Over the years Tenaris has acquired and developed subsidiaries in more than 30 countries ensuring its global presence. The company has succeeded in fully consolidating its US and Canadian presence and is now focusing on improving service quality and customer support within the region. It has also expanded its operations by now offering its services in UAE, Guyana, Indonesia and Brazil. The unique customer integration strategy used by the company has helped to set it apart from its competitors. It has also served the company but helping in cost reduction and a simplified operating process. The company has developed a global network of pipe finishing, distribution and service facilities with a direct presence in most major oil and gas markets. In recent times, the company has forayed into taking up major gas development projects around the world. The gas production project undertaken in Vaca Muerra shale in Argentina is only one amongst many. The company has similar projects, including LNG expansions, ongoing in Qatar, India, Mozambique, Australia and Indonesia. It is also a strong supplier for several Middle East NOCs. A global network of research and development centres has also served the company well. The combination of a comprehensive knowledge of metallurgy and material behaviour with extensive field experience has allowed the company to work in increasingly challenging environments. The offshore projects taken up by the company, like that at Liza, are able to clearly highlight the competency of the company.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Avoiding fugitive emissions in the steel making process: Among the activities run by the industry, steelmaking is one of the most relevant processes in terms of creating emissions. Corporate procedures are required to limit the stack dust emissions for the steel making sites. Best available technologies need to foster improvement beyond compliance, since not all country where the production takes place has set these values as a legal requirement. Today, the steel produced at Tenaris' Dalmine, Siderca, Tamsa Silcotub, and Koppel facilities has an estimated 78% recycled content calculated in accordance with ISO 14021 standards. This is possible because electric arc furnaces (EAF) are used in these facilities. In scopes 1, 2, and 3, these mills collectively produce 1.2 tonnes of CO2 per tonne of steel. The average CO2 emission for the steel industry is 1.89 tonnes, according to the worldsteel association. Tenaris is dedicated to reducing emissions at all levels of its operations and will keep doing so.

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