2011 Environmental ReportUpdate of the Consolidated 2010 Environmental Report Measures. Developments. Results. Locations: Linz, Steyrling

Content

Foreword by the Chairman of the Management Board 03

2011 environmental program Environmental programs of the companies 05

Facts and figures Production figures and energy 07 Core indicators 08 Clean air 10 Energy 12 Water supply and treatment systems 13 Waste management 14 Transportation 15 Radiation, noise, odor and vibration 17

Integrated management and safety systemsInformation for the public pursuant to Industrial Accident Act (IUV) 18

Deadlines, About us 22

3 / Foreword

The voestalpine Group has successfully

demonstrated for many years that sustainable

economic efficiency is compatible with eco­

logical and social responsibil ity. voestalpine

AG is dedicated to environmental protection,

sustainable production and conservation of

resources. At the same time, the company has

indisputably been among the most successful

in its industrial sector.

2011 environmental ReportSteel DivisionForeword by the Chairman of the Management Board

Foreword / 4

A vital prerequisite for this success now and in the future is having globally consistent requirements with respect to sustainability, environmental protection and conservation of resources. The frequently discussed effects of the EU global emissions trading regime have led to increasing bias in international competition and called into question the long-term viability of the primary industry and, consequently, the downstream industry in Europe. A new and more contemporary awareness of the sustainability of steel as a working material must be created on a European level in order to counter this deve-lopment more forcefully than before. Steel must be discussed more comprehensively in order to emphasize its key role in achieving common environmental and energy-related objectives.

This updated Environmental Report and the consolidated version of the previous year are significant parts of our corporate environmental management program. The report focuses on the provisions of the EMAS III directive and offers objective and extensive insights into the multi-facetted activities and measures implemented at voestalpine.

The current economical and ecological facts and figures are satisfying and make us confident about our future. However, our full commitment to the achievement of our ob-jectives and the improvement of our current positions continues as we endeavor to stay true to our mission of remaining one step ahead.

Wolfgang EderChairman of the Management Board

5 / Das QSU-Management5 / 2011 environmental Program

Company objective Measure Data Date Statusvoestalpine Stahl GmbH

Sinter plant: Reduction of dangerous wastes from the Meros plant

Change of adsorption agent from lime hydrate to sodium hydrogen carbonate

Reduction of dangerous waste > 30%

30 November 2011

being implemented

voestalpine Stahl GmbH

Sinter plant: Reduction of NOX emissions

Installation of DeNOx plant Clarification in the course of EIP2, 1/3 savings of NOX

31 December 2012

being implemented

Steyrling location Production of crude lime: Reduced diffuse dust emissions

Installation of new treatment plant (change to shaft conveyor)

Reduction of diffuse dust emissions by approx. 50%

31 December 2014

being implemented

voestalpineGiesserei Linz GmbH

Molding, casting and modeling operations: Reduction of waste chromite stand

Installation of a second separation stage in recycling of waste chromite stand, further reduction of separated waste sand

5–10% savings in purchase of new sand based on purchase of new sand in 2006/07 BY

31 May 2011

being implemented

Logistik Service GmbH

Shipment of steel products: Reduction of CO2 emissions

Utilization of combined transports: Steel transports switched from truck to rail

Of combined transports, only 10% is by truck

31 December 2011

new measures

voestalpine Stahl GmbH

Coke oven plant premises:F&G: Prevention of the expansion of subterranean contaminants in connection with internal utilization of ground water VVE: Reduction of BTEX content in future excavated material

Remediation of brownfield “coking plant Linz (076)“Stage 1: Building a F&G to clean up the effluent ground water and a Vacuum Vapor extraction (VVE) to reduce the BTEX­conta­minated soil air from the saturated soil zone

Reduction of PAHs in the ground water and BTEX in the soil air

F&G: 31 December 2012VVE: 31 December 2022

new measures

voestalpine Stahl GmbH

Reduction of hydrocarbon fractions in strip coating lines 1 and 2

Installation of an activated­carbon filter system in addition to the existing waste water cleaning plant

Hydrocarbon fractions reduced by 10%

31 December 2011

new measures

voestalpine Stahl GmbH

Coking plant: Reduction of coke gas flare losses

Optimization of coke oven gas recovery for utilization in the integrated metallurgical plant through automated opening of the riser pipe cover

Reduction of CO2 emissions by roughly 4,500 t/year

31 March 2012

new measures

voestalpine Grobblech GmbH

GT1 4.2 m four­high stand: Reduction of NOX emissions in pusher­type furnace 1

Transition of special procedure to natural­gas­driven pusher­type furnace 2

Reduction of NOX emissions to 500 mg/Nm3 max.

31 December 2012

being implemented

voestalpine Europlatinen GmbH

Mechanical equipment, infrastructure: Optimization of energy efficiency

Reduction of electricity consumption with focus on optimized stand­by consumption through consolidation of production times and comprehensive group of measures to reduce stand­by consumption in produc­tion free periods

Reduction of electricity consumption by roughly 20%

31 June 2011

being implemented

environmental programs of the companies2011 environmental program

The following table contains the ten most essential environmental measures that contribute substantially to an improvement of the environmental situation at voestalpine. Numerous activities have been planned and implemented in addition to these measures.

Das QSU-Management / 6 2011 environmental Program / 6

Company objective Measure Data Date Statusvoestalpine Stahl GmbH

Power plant: Reduction of NOX emissions

Replacement of block 06 (future standby unit) with block 07

Relative NOX savings of roughly 75 tons per year

30 June 2010

Completed

voestalpine Stahl GmbH

Pickling tandem: Reduced waste water volume (DS water indirectly introduced to waste water cleaning plant in Asten)

Prevention of overflow of DS water in compensation tank of cooling water circulation station in cold­rolling mill 2 through optimization of media control

Wastewater reduced by roughly 10 m3 per day

31 December 2010

Completed

voestalpine Stahl GmbH

Technical utilities: Reduced electricity consumption

Power consumption reduced by supply of 8m blast furnace with low­pressure oxygen instead of oxygen with 15 bars through installation of an additional line and startup of air separation unit 10

Power consumption reduced by 8,000 MWh per year

31 December 2010

Completed

voestalpine Grobblech GmbH

Reduction of grinding dust emissions in the area of plating/finishing

Installation of a deburring machine, including filter system for near elimination of manual deburring without suction

Reduced dust emissions through targeted suction­ing in filter system

30 June 2011

Completed

voestalpine Euro­platinen GmbH

Introduction of railway transport Transition from truck to railway Savings of truck to railway around 60% CO2 emissions per 1000 km, or 340,000 kg CO2 emissions per year

31 May 2010

Completed

Excerpt from implemented environmental activities during the 2010 calendar year at the Linz site

7 / Das QSU-Management7 / Production figures and energy

Production figures and energy

The following production figures show the relevant environmental parameters for the companies included in this Environmental Report.

Linz locationProduction volume Unit 2009 CY 2010 CYCrude steel (CS) million tons 3.95 5.19

Products Unit 2009 CY 2010 CYHot­rolled strip (non­slit) million tons 0.8 1.1

Cold­rolled strip and electrical strip million tons 0.7 0.9

Galvanized strip million tons 1.3 1.7

Organic­coated steel strip million tons 0.3 0.3

Heavy plates million tons 0.6 0.6

Blast furnace and LD slag million tons 1.3 1.3

Cast parts t 9,000 7,030

Laser­welded blanks t 89,500 114,278

energy Unit 2009 CY 2010 CYNatural gas TWh 2.5 3.2

Heavy oil 1) million tons 0.12 0.2

Electric power (outside source) TWh 0.47 0.34

Steyrling locationProducts Unit 2009 CY 2010 CYBurned lime (BL) million tons 0.28 0.35

Armor stones million tons 0.018 0.017

Fines (unburned) million tons 0.4 0.51

energy Unit 2009 CY 2010 CYNatural gas GWh 261 334

Electric power GWh 11 14

1) Used as reduction agent in blast furnace

Das QSU-Management / 8 Core indicators / 8

Core indicators

Linz location Absolute volume Specific volumeProduction volume Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYCrude steel (CS) million tons 3.95 5.19

energy efficiency Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYTotal energy consumption TWh 20.7 25.5 MWh/tCS 5.2 4.9

Renewable energy from outside source 1) TWh 0.26 0.17 MWh/tCS 0.07 0.03

Material efficiency Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYOre million tons 5.6 7.1 t/tCS 1.4 1.4

Scrap million tons 0.5 0.7 t/tCS 0.1 0.1

Burned lime million tons 0.2 0.3 t/tCS 0.1 0.1

Limestone fines million tons 0.4 0.5 t/tCS 0.1 0.1

Coal million tons 1.7 1.8 t/tCS 0.4 0.4

Purchased coke million tons 0.3 0.5 t/tCS 0.1 0.1

Water Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYDanube water million m³ 473.2 602.8

Ground water million m³ 28.5 28.2

Potable water million m³ 0.1 0.1

Total million m³ 502 631.1 m³/tCS 126.9 121.5

emissions Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYDust (diffuse and contained) t 246 239 kg/tCS 0.06 0.05

PM10 t 195 196 kg/tCS 0.05 0.04

NOx als NO2 t 2,743 3,391 kg/tCS 0.7 0.7

SO2 t 2,921 3,985 kg/tCS 0.7 0.8

CO t 55,663 56,622 kg/tCS 14.1 10.9

CO2 2) million tons 6.9 8.6 t/tCS 1.7 1.7

Waste Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYNon­hazardous externally treated waste t 41,995 75,040 kg/tCS 10.62 14.45

commercial waste materials similar to municipal solid waste t 1,470 1,140 kg/tCS 0.37 0.22

separate collected municipal solid waste t 582 478 kg/tCS 0.15 0.09

hazardous externally treated waste t 69,610 99,486 kg/tCS 17.61 19.16

internally landfilled waste t 36,587 38,219 kg/tCS 9.25 7.36

Material recycling in the production of crude steel t 420,523 435,578 kg/tCS 106.36 83.87

Material recycling of external materials in the production of crude steel t 65,502 79,294 kg/tCS 16.57 15.27

Biological diversityTotal surface area at site 3) m² 5,010,000

1) Evaluation of renewable energy proportions from purchased third­party electricity (48.96%) in line with electricity labeling. This reflects the following for the 2010 calendar year: hydropower (38.82%), solid biomass (5.13%), liquid biomass (0.064%), biogas (1.028%), wind energy (3.765%), photovoltaic power (0.051%), waste containing a high percen­tage of biogenic materials (0.016%), landfill gas (0.046%), sewage gas (0.034%) and geothermal energy (0.003%).

2) From Emission Certificate Act (ECA) monitoring3) Core biological diversity indicator refers to the surface of the works premises at the Linz location as registered in the land registry in January 2010.

Other greenhouse gases such as methane and fluorochlorohydrocarbons (FCHC) are emitted in only small amounts (roughly 60 tons of methane and 90 kg of FCHC).

The core indicators refer to total crude steel production in tons and to the production volume of burned lime in tons.

9 / Das QSU-Management9 / Core indicators

Steyrling location Absolute volume Specific volumeProduction volume Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYBurned lime (BL) million tons 0.28 0.35

energy efficiency Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYTotal energy consumption TWh 0.27 0.35 MWh/tBL 1.0 1.0

Renewable energy from outside source 1) TWh 0.006 0.007 MWh/tBL 0.02 0.02

Material efficiency Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYLime for burned lime production million tons 0.5 0.6 t/tBL 1.8 1.8

emissions Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYDust 2) t 1.5 1.8 kg/tBL 0.01 0.01

Dust (calculated diffuse emissions) t 1,200 1,200 kg/tBL 4.3 3.4

NOx as NO2 2) t 16 18 kg/tBL 0.06 0.05

CO2 3) million tons 0.26 0.34 t/tBL 0.9 1.0

Waste Unit 2009 CY 2010 CY Unit 2009 CY 2010 CYNon­hazardous externally treated waste t 17 17 kg/tBL 0.06 0.05

Hazardous externally treated waste t 2.3 16.0 kg/tBL 0.01 0.05

Material recycling in the production of crude steel 4) t 4.5 0.0 kg/tBL 0.02 0.00

Biological diversityTotal surface area at site 5) m² 1,270,000

1) Evaluation of renewable energy proportions from purchased third­party electricity (48.96%) in line with electricity labeling. This reflects the following for the 2010 calendar year: hydropower (38.82%), solid biomass (5.13%), liquid biomass (0.064%), biogas (1.028%), wind energy (3.765%), photovoltaic power (0.051%), waste containing a high percentage of biogenic materials (0.016%), landfill gas (0.046%), sewage gas (0.034%) and geothermal energy (0.003%).

2) Emissions from lime furnaces 3) From Emission Certificate Act (ECA) monitoring4) Materials recycled at the Linz site5) Core biological diversity indicator refers to the surface of the works premises at the Steyrling location as registered in the land registry in October 2010.

Das QSU-Management / 10 Clean air / 10

Clean air voestalpine in a glass house

Like no other integrated metallurgical facility worldwide, emission data at the Linz site of voestalpine are monitored and measured at more than 26 emission sources and the measurements transmitted online to the local authorities in Linz. Compliance with limit values can be monitored by the authorities at any time. The emissions of intermittently*) monitored emission sources are controlled by accredited measuring institutes in measuring intervals stipulated by the authorities.

Business unit Plant system Mean half-hour value (mg/mn3) Measured mean annual value (mg/mn³)

nox as no2 limit value 2009 CY 2010 CYPower plant Block 06 100 79 72

Bus bar 150 55 71

Block 03 100 39 29

Block 04 100 41 40

Block 05 100 43 45

Block 07 100 – 1) 58

Gas and steam turbine 33 23 22

Blast furnace blower station Central blower station 2, boiler 1 100 4 4

Central blower station 2, boiler 2 100 Out of operation Out of operation

Hot­rolling mill Pusher­type furnace 06 430 187 2) 162

Pusher­type furnace 07 430 397 283 2)

Walking­beam furnace 1 3) 95 120

Sinter plant Sinter belt 5 350 232 241

Cold­rolling mill Hot­dip galvanizing line III 250 131 122

Hot­dip galvanizing line IV 250 120 122

Hot­dip galvanizing line V 250 – 1) 106

So2 limit value 2009 CY 2010 CYPower plant Block 06 200 84 101

Bus bar 200 86 97

Block 03 200 92 106

Block 04 200 101 112

Block 05 200 101 118

Block 07 200 – 1) 113

Gas and steam turbine 67 28 35

LD steelmaking plant Secondary dedusting 1 101.5 4) 26 4) 53 4)

Hot­rolling mill Pusher­type furnace 06 200 60 84

Pusher­type furnace 07 200 82 98

Coking plant Sulfuric acid and gas cleaning system 1000 5) 452 431

Sinter plant Sinter belt 5 350 249 272

Co limit value 2009 CY 2010 CYPower plant Block 03 100 2 2

Block 04 80 5 5

Block 05 80 9 8

Block 07 80 – 1) 9

Gas and steam turbine 33 4 5

Blast furnace Central blower station 2, boiler 1 80 0.3 0.2

Central blower station 2, boiler 2 80 Out of operation Out of operation

Strip coating line Strip coating line 1 100 4 5

Strip coating line 2 100 8 8

*) based on information provided by Worldsteel Association.

11 / Das QSU-Management11 / Clean air

Business unit Plant system Mean half-hour value (mg/mn3) Measured mean annual value (mg/mn³)

Limit value total C 2009 CY 2010 CY

Strip coating lineStrip coating line 1 30 3 3

Strip coating line 2 30 4 4

H2S limit value 6) 2009 CY 2010 CYCoking plant 500 264 310

HF limit value 2009 CY 2010 CYSinter plant Sinter belt 5 3 <1 <1

Dust limit value 2009 CY 2010 CY

Blast furnace

Casting bay dedusting (blast furnace A) 20 6 9

Casting bay dedusting system (blast furnaces 5 and 6)

10 1 1

Sinter plantSinter belt 5 10 1 1

Sinter plant dedusting 24 11 11

LD Steelmaking Plant

Secondary dedusting 1 20 1 2

Secondary dedusting 2.1 10 5 5

Secondary dedusting 2.2 10 0.4 0.5

All emission sources are continuously monitored. The data are referenced each individual calendar year.1) Hot­dip galvanizing line V and block 07 were put into operation during the 2010 calendar year.2) Reduction based on conversion to low­NOX burners (August 2010).3) The limit value is defined in the course of the hot­rolling­mill acceptance test.4) Unit deviates from other values in kg/h.5) There is also a fraction limit value of 150 kg SO2/day under normal operating conditions.6) H2S is contained in the coke oven gas that is energetically utilized in other process steps. Emissions only occur as SO2.

Linz is one of the cleanest industrial cities in Europe of today and is at the top of the list of 53 large cities in Europe with respect to air quality.*) voestalpine has contributed substantially to this development. Over the past 25 years (1985–2010) and in spite of a production increase of more than 60%, dust emissions have been reduced by more than 95%, SO2 emissions by more than 70% and NOX emissions by more than 25%.

Specific air-borne emissions

4,5

5,0

4,0

3,5

3,0

2,5

2,0

1,5

1,0

0,0

0,5

(kg/tCS)

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

(year)

DustSo2

nox as no2

Specific volumes per year in kg/tCS

Emissions during lime production at the Steyrling site are low and comply with the limit values. Many times, the figures fall well under the prescribed values. Diffuse emissions in mining are relevant and will be greatly reduced by the planned modernizations in mining. Weather conditions are taken into account during activities (such as blasting) that involve large quantities of dust.

*) Source: Air Quality Data in 2008 – the Comparison of Cities und Regions in Europe, published by the Municipality of Linz

Das QSU-Management / 12 energy / 12

energy

The improved economic situation improved our production utilization during the 2010 calendar year and led to better overall energy efficiency than in previous years in most production units.

Among other things, this was due to great efforts in the following areas:

§ Systemic inspection of gas and thermal networks and resulting optimizations in plant configurations and energy-efficient production technologies

§ Measures to increase energy efficiency in pumps, electric motors and heating systems, reduction of energy consumption during downtimes and measures taken as part of the continuous improvement process. § Modernization and further expansion of plant systems

Energy source 2009 CY 2010 CYUnit Volume Unit Calorific value Unit Volume Unit Calorific value

Natural gas mn³ 223,701,041 MWh 2,254,725 mn

³ 315,140,979 MWh 3,178,682

Coke oven gas mn³ 566,711,489 MWh 2,794,626 mn

³ 609,081,755 MWh 2,992,116

Blast­furnace gas mn³ 4,980,094,881 MWh 4,859,211 mn

³ 6,421,556,730 MWh 6,608,514

Converter gas mn³ 359,293,515 MWh 687,352 mn

³ 432,830,826 MWh 822,699

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

20.1

19.4 19.4

20.2

19.019.5 19.3

18.8 18.618.3 18.2 18.1 18.2

18.9

18.1

Specific net energy consumption per year in GJ per ton of crude steel produced

Net energy consumption

13 / Das QSU-Management13 / Water supply and treatment systems

Water is one of the most important (auxiliary) utilities throughout the entire production process. In order to conserve resources and minimize additional water consumption, process water is recycled wherever possible and is cleaned before it is released back into the environment. Depending on the elements contained in the waste water, it is either piped to the regional waste-water treatment plant of Linz AG or channeled into either the Danube or the Traun river.

The methods and process technologies used by voestalpine to treat waste water comply in every case with the pertinent standards and guidelines with respect to limit values. Many times, the figures fall well under the prescribed values. The required plant configuration for such compliance meets the most modern technical specifications.

Water supply and treatment systems

The increase in absolute discharged water volumes was due to higher production levels. But the value specific to production, however, was lower.

Specific discharge into Danube Specific discharge into waste water treatment plant

72

232

0.50.543

61

0.40.7

*) minus initial load from Danube

Total heavy metals (Pb + Zn + Cr + Ni) in g/t crude steel

phenol in g/t crude steel

Total heavy metals (Pb + Zn + Cr + Ni) in g/t crude steel *)

COD in g/t crude steel *)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

442 142

479

136

490

134

474

131

459

133

511

127

522

127

545

122

546

122

553

112

557

112

592

109

594

113

631

502

122127

Specific discharged waste­water volumes per year in m3 per ton of crude steel produced

Discharged waste water volume per year in millions of m³

2009 2010 2009 2010

Trends in waste­water volumes

Waste water load

Das QSU-Management / 14 Waste management / 14

Waste management

Figure: Recovery quotas of recyclable and waste materials at the Linz site of voestalpine. (Absolute figures are shown as core indicators.)

Material recycling in the production of crude steel

Internally landfilled waste

Total external waste treatment

External recovery

External disposal

18.9%

8.0%

67.2% 26.9%

5.9%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

16.30

0.41

13.30

0.32

13.90

0.28

10.21

0.28

10.60

0.28

10.70

0.28

11.87

0.29

9.71

0.28

8.67

0.28

18.50

0.24

8.58

0.23

9.48

0.26

11.52

0.27

7.369.25

0.22

0.37

Specific (internal) landfilled waste volumes per year in kg per ton of crude steel produced

Specific commercial waste materials similar to municipal solid waste volumes per year in kg per ton of crude steel produced

Internally landfilled waste and commercial wastematerials similar to household waste

The processes in the integrated metallurgical facility utilize a great deal of residual and waste ma-terials (e.g. filter dust from the dedusting systems) that can be recycled to a high degree both inter-nally and externally in the metallurgical production plant systems and downstream units. Attempts are made continually to optimize the processes and procedures in order to utilize resources more efficiently and to attain a higher degree of material recycling. For example, iron-containing residu-als are efficiently recycled, particularly in the sintering plant, which is equipped with an efficient downstream waste gas cleaning system. In addition, residual materials occurring in both in-house processes and external waste are charged to the blast furnace to increase resource efficiency and to conserve natural raw materials.

Approximately 67.2% of the residual and waste materials at voestalpine were returned to the produc-tion processes during the 2010 calendar year. However, some hazardous and non-hazardous wastes that cannot be utilized in company operations are accumulated. These are dumped either at the internal deposits (5.9% during the 2010 calendar year) or are treated externally (26.9% during the 2010 calendar year). In the 2010 calendar year, approximately 18.9% of the non-hazardous and hazardous waste materials disposed of at external partners were recovered. The most voluminous waste material is dust generated in the dedusting systems during steel production. This dust weighed a total of 88,000 tons in the 2010 calendar year and is used in iron and zinc recycling processes. The degree of mate-rial recycling of residual and waste materials at the Linz site is 86.1%, which represents a substantial contribution to resource efficiency. In addition, the scrap produced in the works is used together with purchased scrap in the production of crude steel.

The following is a summary of the 2010 calendar year:

15 / Das QSU-Management15 / transportation

In addition to direct environmental effects at the Linz site that are thoroughly documented in this Environmental Report, transport is without a doubt the factor that contributes most to the indirect environmental impact.

Defining such diffuse emissions is difficult to impossible because of the large number of transport routes in use by the various means of transportation (railway, ship, truck) with a wide variety of engine and vehicle technologies.

For this reason, no direct emission assessment is made for the delivery of raw materials to the plant and for the dispatch of products from the plant. Only indirect but significant evaluation criteria are determined. As documented in literature, railway transport is the most environmentally sound with respect to emissions. This means of transport is followed by ship and then truck transportation.

The transport of raw materials is coordinated for the most part by voestalpine Rohstoffbeschaffung. The received raw material volumes in tons were multiplied by the number of kilometers transported and classified under the respective forms of transport.

The raw materials were distributed almost evenly in 2010, as in the 2009 calendar year, between ship and railway transports. There has, however, been a slight increase in raw material transport by railway. The raw material volumes delivered by truck remain insignificantly small (< 0.1%).

transport

Transport of raw materials

Means of transportation for raw materialsUnit 2009 CY 2010 CY

Transport of raw materials 1) [1000 tkm] 5,500,000 7,300,000

Transport by rail [%] 50.7 51.0

Transport by ship 2) [%] 49.3 49.0

Transport by truck [%] 3) 3)

1) Raw material deliveries in ton kilometers of ore, coal, scrap, lime, coke and coke breeze 2) Raw material transport by inland waterway 3) Raw material transport by truck < 0.1%

Das QSU-Management / 16 transportation / 16

Means of transportation for product dispatchUnit 2009 CY 2010 CY

Products dispatched 1) [t/a] 3,100,000 3,700,000

Transport by rail [%] 65.0 65.5

Transport by ship [%] 11 10

Transport by truck [%] 24.0 24.5

1) Products dispatched through Logistik Service GmbH from the Linz site

Product dispatch

Products are dispatched from the voestalpine site in Linz primarily through Logistik Service GmbH. Products manufactured by voestalpine are transported from Linz by rail, truck and ship to numerous customers worldwide. Product transports have been increasingly moved to the railway over the past few years. In the 2010 calendar year, the portion of dispatches to the railway system was increased to almost two thirds. This conforms to our view that rail transports are the most ecologically sound.

In spite of high customer demands with respect to delivery deadlines, more customers received on-time railway or combined (truck-rail-truck) deliveries than ever before. Successful implemen-tation of such measures and the accompanying stepwise transition from the truck to the railway are expected to reach their highest levels in the future.

17 / Das QSU-Management17 / Radiation, noise, odor and vibration

All raw materials at the site are inspected thoroughly for radiation by highly sensitive devices before they are delivered to production facilities. Radioactive tests are conducted on all heats of the interme-diate hot-metal product to rule out any risk. voestalpine customers are thus guaranteed a clean high-quality product.

In the course of the environmental impact assessment as part of the L6 Project, contingencies were made for noise emissions throughout the voestalpine works premises. The works premises were divided into 16 contingency sections. Higher noise loads of individual surface areas can be balan-ced by surface areas that do not reach permissible noise levels. The defined upper limits of noise pollution are in the interest of both our neighbors as well as those who work at voestalpine. From the perspective of neighborhood protection, limitation of noise emissions is important regardless of on-site expansion. The limit was defined in the interest of emission neutrality, which ensures that neighbors are not subjected to any additional perceivable noise pollution.

Many measures to prevent unpleasant odors have been successful in recent years. The most effective measures in this respect have been in the coking plant. The shutdown of the slag foaming plant was also an important measure, and the modernizations made in the coke oven batteries contributed greatly to the reduction of odors.

Lime-containing rock at the Steyrling site is mined from the walls of an open pit by means of conventional blasting. This can cause ground vibration. Shooting and blasting activities are announced to neighboring parties ahead of time.

Radiation, noise, odorand vibration

Radiation

Noise

Odor

Vibration

Das QSU-Management / 18 Information for the public pursuant to Industrial Accident Act (IUV) / 18

Information to the public on safety measures and correct

behavior in the event of industrial accidents pursuant to

Section 13 of the Industrial Accident Act (IUV)

Your safety is our priority!

At the Linz production site, voestalpine Stahl GmbH operates plant systems that are subject to the Industrial Accident Act and provides the following information on safety measures and correct be-havior in the event of industrial accidents. Not every plant system failure is an industrial accident. An industrial accident is defined as an event in which certain dangerous substances are released that pose a danger to humans or to the environment. The precautions to be taken to prevent and limit industrial accidents are set forth in the Industrial Accident Act. Because of the comprehen-sive safety measures that have been taken for many years in production, the probability of you as a neighbor being affected by an industrial accident is very low. An industrial accident can only occur in the event that all the precautionary technical and organizational measures simultaneously fail. In the unlikely event that an industrial accident occurs in spite of all the safety measures that have been implemented, the following information advises you of steps to take.

There are four relevant plant areas in the integrated metallurgical facility that could have an effect beyond the works premises in the unlikely event of an industrial accident.

� Coke oven batteries, including coking gas recovery, conveyor system and gasometer. � Tar extraction and crude benzene plant, including storage tank � Blast furnaces, including furnace gas cleaning, conveyor system and gasometer � Converter operations, including converter gas cleaning, conveyor system and gasometer

Steam reformers A and B and air separation units 8 through 10 are operated according to the Linde low-pressure technology by Linde Gas GmbH and are safety-relevant systems installed on the works premises in Linz. The possible effects of this plant system are taken into account in this information. The substances contained in the systems of voestalpine Stahl GmbH and Linde Gas GmbH are subject to the provisions set forth in Section 8a of the Trade and Industrial Code dated 1994. The authorities have been notified pursuant to Section 84c, Para. 2 of the Trade and Industrial Code dated 1994.

Respective safety reports have been submitted to the authorities.

The following safety aspects are taken into account in the safety report submitted:

� Processes and reactions occur safely in closed systems. � Dangerous substances are replaced where possible and remaining amounts are reduced to

the specifically required volumes. � The avoidance of waste takes high priority in the planning and operation of plants. � Safety systems generally consist of multiple stages. � The plants are operated, maintained and tested by qualified personnel

regularly re-trained. � The plants are regularly tested in accordance with legal regulations by

in-house and external experts (such as TÜV).

19 / Das QSU-Management19 / Information for the public pursuant to Industrial Accident Act (IUV)

Stringent safety regulations are assessed by the authorities for all designated plant systems. As a result of these regulations and precautions taken by the operators, there has never been an accident at the works since it was established that would have posed any hazard to the population.

In spite of the high safety standards, the risk of accidents can never be completely eliminated. Even though the probability of an accident with effects beyond the works premises is very low, voestal-pine Stahl GmbH nevertheless takes this opportunity to inform the public in a precautionary man-ner of possible effects and measures to take in the event of an accident.

Coke oven batteries, including coke oven gas recovery, conveyor system and gasometerThe coke required in the blast furnace is produced in the coking plant. For this purpose, finely ground coal is heated in coking ovens that are arranged in batteries each containing a total of 40 ovens. The coal is heated for approximately 18 hours to a temperature of roughly 1,250°C. The coal is converted into coke, which means that it is baked until it has released all its gaseous constituen-ts. These gaseous constituents make up the coke oven gas that is cleaned to a high degree in the coking plant and is then used as a fuel gas in the power plant and other furnace systems throughout the steel works. A gasometer and a network of gas lines store the gas until it is used. Coke oven gas contains approximately 7% carbon monoxide and is, as are all flammable gases, combustible with certain amounts of air.

Tar extraction and crude benzene plant, including storage tankCrude tar and crude benzene occur as co-products during the high-grade cleaning of the coke gas. Crude benzene is cleaned out of the coke gas by means of wash oil in two scrubbers. It is then re-moved by means of distillation from the circulating wash oil and stored intermediately in a 2,000 m3 tank before it is delivered to purchasers. The crude benzene storage tank is suctioned out. The fil-ling process is by means of a gas displacement device to ensure that no emissions can be released. Crude benzene contains up to 85% benzene. The fumes are, as with all other flammable liquids, combustible when mixed with a certain amount of air. The crude tar condenses with condensati-on from the crude coke gas and is separated from the condensate in tar separators. Crude tar is pumped through the intermediate tar containers into the crude tar tanks. The individual parts of the tar separator units are equipped with a liquid-tight bucket system to prevent any emission to the environment. The crude tar and crude benzene are contained in tank railcars until they are used in the closed systems of production lines.

Blast furnaces, including blast furnace gas cleaning, conveyor system and gasometerBlast furnace gas is a by-product and co-product that occurs during the production of hot metal in the blast furnace. The technical term is top gas. This top gas is cleaned to a high degree, removing all the dusts, and is used as a fuel gas in the blast furnace itself, the power plant, in the coking plant and other furnace systems throughout the steel works. A gasometer and a network of gas lines store the gas until it is used. The entire network is a closed system. Top gas contains approximately 25% carbon monoxide and is, as are all flammable gases, combustible with certain amounts of air.

Converter operations, including converter gas cleaning, conveyor system and gasometerSteel differs chemically from iron primarily in its lower carbon content. The carbon contained in the crude iron produced in the blast furnace is removed from the steel melt by means of the oxygen top-blowing process during steelmaking in the LD steel plant. This process yields the so-called con-verter gas that is subjected to a high-grade cleaning process in electric filters and then added in a controlled manner to the top gas in order to increase its calorific value. A gasometer and a network of gas lines store the gas until it is used. The system of course is closed. Converter gas contains approximately 60% carbon monoxide and is, as are all flammable gases, combustible with certain amounts of air.

Information on possibly hazardous plant systems and production activities

Das QSU-Management / 20 Information for the public pursuant to Industrial Accident Act (IUV) / 20

Air separation unitAir is divided in air separation units (8 through 10) belonging to Linde Gas GmbH by means of rectification into nitrogen, oxygen and argon constituents. The generated gases are either piped in gaseous form to consumers in the works of voestalpine Stahl GmbH or to the Chemiepark or they are liquefied, stored at super-cooled temperatures and filled into tank cars. In addition to the air as a raw material and different energies, hydrogen is also required in the argon fine cleaning system (8) of the air separation unit. This hydrogen is supplied by the hydrogen production facility at voestalpine.

Hydrogen production facilityNatural gas is converted through chemical reactions into hydrogen in the steam reformers (STR A and B) of Linde Gas GmbH. The gaseous hydrogen is supplied to voestalpine Stahl GmbH and Chemiepark in Linz. External customer supply is provided on trailer units.

Information on the types of dangers and theirpossible consequences

A high standard of safety is guaranteed through continuous monitoring by plant personnel, regular tests and the safety precautions described above.

Should an industrial accident occur, however, in spite of all the technical and organizational prepa-ration made to prevent such an incident, the emission of poisonous substances still poses a possible danger in addition to explosion and fire. In such an instance, effects on human health and the natu-ral environment outside the works premises, especially caused by gas or fumes that may be carried over distances, cannot be ruled out.

The following substances when emitted into the atmosphere pose a potential danger beyond the premises of the steel works.

Carbon monoxideCarbon monoxide is contained in:

� Coke oven gas (approx. 7 volume percent CO) � Blast furnace gas (approx. 25 volume percent CO) � Converter gas (approx. 60 volume percent CO)

The listed process gases are easily combustible and are poisonous because of their CO content. When emitted into the atmosphere, these gases are diluted with atmospheric air to differing degrees that lead to various symptoms depending on the respective concentrations. These symptoms may include headaches, dizziness, sickness, sleepiness, asphyxiation, unconsciousness and respiratory paralysis.

Patients must be exposed to fresh air, must rest comfortably and tight clothing must be loosened. In the event of apnea, mouth-to-mouth resuscitation is required to introduce oxygen to the brain. Call a doctor. Keep patients warm. If there is a risk of unconsciousness, place the patient on his or her side and transport in stable position.

BenzenePatients must be exposed to fresh air, must rest comfortably and tight clothing must be loosened. Resuscitate immediately in the event of apnea. Remove contaminated clothing immediately. Rinse contaminated skin sufficiently with water. Rinse contaminated eyes adequately with water for ten to fifteen minutes. Call a doctor. Keep patients warm. If there is a risk of unconsciousness, place the patient on his or her side and transport in stable position.

Atmospheric gases and hydrogenBecause of their volumes and properties (both not poisonous) and distances to other substances, the hazardous substances (oxygen, nitrogen, argon and hydrogen) contained in the air separation and hydrogen production units are not potentially dangerous outside the premises of voestalpine Stahl GmbH.

21 / Information for the public pursuant to Industrial Accident Act (IUV)

MeasuresThe measures taken to eliminate accidents and limit the consequences of an accident are regulated in the emergency plan of voestalpine Stahl GmbH. This plan is regularly updated in collaboration with the building conservation and regulation authorities and the fire department of Linz pursuant to the pertinent regulations of the provincial capital of Linz. The measures to be taken in the event of an incident are obligatory. The safety report of voestalpine Stahl GmbH was submitted on 28 September 2007 to the municipal offices of the city of Linz and is an integral part of the tests carried out by the responsible authorities that also serve to meet requirements and adaptations pursuant to Section 8a of the Trade and Industrial Code dated 1994. With respect to the air separation unit, a safety report has also been submitted by Linde Gas GmbH.

External emergency planDetailed information on the alarms and measures outside the works premises can be found in the ex-ternal emergency plan issued by the fire department. Required measures in the event of Danger Level IV are contained in the internal emergency plan.

Notification procedures (excerpt from the emergency plan of voestalpine Stahl GmbH)The following measures have been determined in accordance with the emergency plan of voestalpine Stahl GmbH:

� Works fire department responds to the scene with all fire trucks and breathing apparatus vehicle

� Fire department of the City of Linz responds to the scene � Establishment of a command center on site managed by City of Linz fire department � Measurements taken to eliminate dangers such as cordoning off area by gas search team

evacuation of the cordoned off area, radio announcements, etc.

WarningThe public is warned by means of sirens in the event of an incident that has an effect on the outside environment. Industrial accidents on the premises of voestalpine Stahl GmbH and action required from the public are announced on public radio and television stations. This procedure and the type of announcements to be made to the public are detailed by the municipal authorities of the provincial capital city of Linz and are binding.

NotePlease do not call emergency telephone numbers without good reason. This will ensure that the lines remain open for actual emergencies.

Contact numbers for inquiries and further information:Works Fire Department: T. +43/50304/15-8445Environmental Department: T. +43/50304/15-2999Occupational Safety Department: T. +43/50304/15-6190Linde Gas GmbH: T. +43/50/4273-1616

Deadlines, About Us / 22

The next consolidated Environmental Report will be submitted for review in October 2013 and published thereafter. In addition, an updated version is created, externally reviewed and published on an annual basis.

Names of the certified environmental experts:Johann KitzwegerHarald KetzerFlorian Mitterauer

Lloyd’s Register Quality AssuranceOpernring 1/E/620, A-1010 Vienna

Environmental protection dialog:The Environmental Report provides an opportunity for us to demonstrate our environmental activities and to engage in a dialog with our readers. We will be pleased to receive your feedback and respond to your comments on environmental issues.

Hannes SigmundSenior Vice PresidentEnvironmental Affairs

voestalpine Stahl GmbH,voestalpine-Straße 3,4020 Linz, Austria

T. +43/50304/15-2244F. +43/50304/55-5284johann.sigmund@voestalpine.com

The Linz and Steyrling locations have established independent environmental management systems. The public is informed of the environmental measures taken at these locations in compliance with the community systems for environmental management and environmental impact assessment.

Registry number: AT-000216

Contact:Owner, editor and media owner: voestalpine Stahl GmbH, voestalpine-Straße 3, 4020 Linz, AustriaResponsible for content: Hannes SigmundDesign: Projektagentur Weixelbaumer KG, Landstraße 22, A-4020 Linz, www.projektagentur.at

REG.NO. AT- 000216

Deadlines, About UsPerfect service

voestalpine Stahl GmbHvoestalpine­Straße 34020 Linz, AustriaT. +43/50304/15­2244F. +43/50304/55­5284stahl@voestalpine.comwww.voestalpine.com/stahl

voestalpine Grobblech GmbHvoestalpine­Straße 34020 Linz, AustriaT. +43/50304/15­6146F. +43/50304/55­8852grobblech@voestalpine.comwww.voestalpine.com/grobblech

voestalpine Gießerei Linz GmbH voestalpine­Straße 34020 Linz, AustriaT. +43/50304/15­6226F. +43/50304/55­2277giesserei@voestalpine.comwww.voestalpine.com/giesserei_linz

Logistik Service GmbHLunzerstraße 414031 Linz, AustriaT. +43/732/65 98­2000F. +43/732/69 80­2000office@logserv.atwww.logserv.at

voestalpine Europlatinen GmbH Stahlstraße 474020 Linz, AustriaT. +43/50304/15­8341F. +43/50304/55­8954europlatinen@voestalpine.comwww.voestalpine.com/europlatinen