The executive vice-president of the TenarisSilcotub group, Paolo Bassetti, says that the company''s main development avenues are related to the creation of an integrated production structure and investments meant to boost product quality.
Paolo Bassetti came to Romania in 2004, when Tenaris took over Silcotub Zalau, determined to turn a company relying on volume and quantity into a company relying on quality.
He restructured it and gave up the plants that had no relation to the company''s core business, tube production, and created an integrated structure comprising Silcotub tube producer and Calarasi-based steel mill, the former Donasid complex.
"In 2004 when we came to Romania, we took over three plants: Silcotub, Laminorul and Tubinox. Meanwhile, we''ve managed to restructure and modernise Silcotub and by taking over Donasid we''ve created an integrated production structure.
"The other two plants, Laminorul Braila and Tubinox, were not productive and did not serve the group''s interests and therefore we restructured and made them possible to privatise and then gave them up, though we could have closed them," stated Bassetti.
Since 2004, Tenaris group has invested around 200 million dollars (160 million euros) in Romania. The price paid for the takeover of Silcotub and Calarasi-based complex makes up the largest part of this sum, while investments made in the acquisition of new installations amounted to nearly 50 million dollars (41.5 million euros). Tenaris took over Donasid Calarasi in May 2005, in a deal revolving around 37 million euros and has already invested about 33 million dollars (27.5 million euros) to start production of round billets and to adjust to environment protection norms.
"At this moment, the plant in Zalau and the steel mill in Calarasi make up an integrated structure and thanks to the implemented IT system, the moment Silcotub receives an order, the steel mill in Calarasi immediately learns what type of steel it should manufacture, which significantly reduces the delivery interval. The main advantage is, however, the cut in raw material imports from Russia, with the steel mill of Calarasi due to provide for 95% of Silcotub needs by June," explained Bassetti.
In Silcotub, Tenaris has invested 12 million dollars (around 10m euros) over the past two years, mainly to acquire new equipment, which has contributed to product quality improvement and added value growth.
"In 2006, we plan to invest 24 million dollars in Silcotub, where we are building new production lines. These investments are meant to boost the added value of our products. Whereas originally the added value of Silcotub products revolved around 15%, after these investments are finalised, the value will be about three times higher," specified the executive vice-president of TenarisSilcotub.
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