Steel Manufacturers Association

OSHA Meeting

September 17, 2009

John Carroll, Committee Chairman, SSABMike Taylor, Vice Chair, CMC Americas

Randy Cooper, Vice Chair, NucorTom Danjczek, SMA

Adam Parr, SMA

About the SMA-Composed of 34 North American electric arc furnace (“EAF”) steel producing Member Companies, and 129 Associate Member steel industry suppliers

-Today, over 62% of U.S. steel production comes from the EAF process – up from just 10% in the early 1970s

-SMA is the largest steel trade association in North America – SMA Members account for over 70% of total domestic steel production

SMA Safety Overview

SMA Members are committed to improving safety through the sharing of information:

• SMA Safety Statistics• Safety Committee Meetings• Safety Website• Fatality Prevention Initiative• Safety Surveys• Conference Calls• SMA Safety Awards• Contractor Safety• Cooperative Programs

SMA Safety Statistics-SMA Members report monthly data on number of recordable cases, lost workday cases, days lost, and hours worked

-Compiled data is circulated to members

-Year-to-date 2009 data demonstrates an across the board improvement over 2008 performance, which was already markedly improved over 2007

SMA OSHA Recordable Incidence Rate

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2006 2007 2008 2009

Rat

e

SMA OSHA Lost Workday Rate

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2006 2007 2008 2009

Rat

e

Safety Committee – Spring Meeting

-61 attendees, including member company safety professionals and upstream/downstream operators

-Agenda topics: Fatality Prevention Initiative; fall protection; crane safety; contractor qualifying; wellness programs; PPE technology upgrades; safety during an outage; slag pot transport; safety observation programs; and lean methodologies

-OSHA Update from Kurt Petermeyer, Area Director of Mobile Area Office

Safety Committee – Fall Meeting

-Expecting over 120 attendees, including member company safety professionals, plant managers, and upstream/downstream operators

-Agenda topics: Fatality Prevention Initiative; managing safety during economic downturn; near miss discussion; industrial hygiene record keeping; mobile equipment alarm devices; crane safety; supplier safety efforts; lead programs; NFPA 70E

-OSHA Update from Jeffry Carter, Deputy Commissioner, Indiana OSHA

SMA Safety Websitewww.steelsafety.org

-Notes and presentations from Committee meetings, 2002-2009

-Safety survey results, grouped by date and topic

-Catalogue of company incident and near miss reports

-Radiation safety resources

-Fatality Prevention – document, audit tools, and videos

Fatality Prevention Initiative-Written guide, internal audit tools, and videos

-Collaboration between members, and benchmarking against other industries

-Addresses five critical areas: Confined Space; Fall Protection; Lockout-Tagout-Tryout; Mobile Equipment/Material Handling; and Rail

-Sixth component, Cranes, currently under development

-Widely shared within plants, and with upstream/downstream operations

Fatality Prevention Initiative

After 12 employee and contractor fatalities at SMA member plants in 2008, there have been two year-to-date in 2009.

There is still plenty of work to be done, but early results from the Fatality Prevention Initiative have been promising.

SMA Safety Surveys-Regular questionnaires distributed by member request to address specific safety topics

-Recent topics have included: Contractor Safety in Emergency Situations; Touch-Free Tools; Ladle Plug/Impact Pad Gunning; Scarfing and Cutting; Histoplasmosis; Scrap Explosions; Ladle Malfunctions; Truck Safety; Fire Detection Equipment; Crane Maintenance; Air Systems; Incident Report Software; Hot Dip PPE; Degasser Procedures; Protective Eyewear; and Swine Flu Contingency Plans

-SMA schedules conference calls on an as-needed basis to address specific concerns

SMA Safety Awards-SMA’s Board of Directors recognizes outstanding safety performance through the annual Don Daily SMA Achievement in Safety Award. 2009 recipients: CMC Steel Alabama, and Donovan Marks of Nucor Corporation

-SMA Recognition in Safety honors mills that achieve zero lost time rates for a calendar year. 2008 recipients included a record 13 mills: CMC Steel Alabama; CMC Steel Arkansas; Evraz Oregon Steel; Evraz Red Deer; Evraz Regina Steel; Gerdau Ameristeel Beaumont; Gerdau Ameristeel Calvert City; Gerdau Ameristeel Wilton; North Star BlueScope; Nucor Connecticut; Nucor Decatur; Nucor Hertford; and Nucor Texas

Benchmarking-SMA Safety Committee and collected data provide the opportunity to benchmark against other minimill steel producers; for example, what is CMC Americas doing?

• Accountability, Others Reminding Others, CMC internal best practices, Cardinal Rules, etc.

• Others Reminding Others is an observation program that CMC has implemented

Upstream/Downstream-SMA invites Associate Members (suppliers of goods and services to the industry) to participate in Safety Committee meetings

-Share presentations, survey responses, and Fatality Prevention Resources

-SMA membership committed to improving safety performance throughout the industry

Associate Members are seeing returns through improved safety performance

as well…

Days since Lost Work Case: 312 days

Days since Eye Injury: 309 days

Safety First Current Safety Statistics

Hrs Worked 20092006 2007 2008

2009 YTD

118,082

OSHA Recordable Rate 11.3 10.9 2.8 1.64

Lost Work Case Rate 5.41 2.88 1.4 0

Date Incident Preventive Measures

8/25/09While moving gulper employee stepped in

hole twisting left knee

Work order submitted to evaluate and repair parts of the

floor in the L.G.

Last Accident/Incident

Contractor Safety

-SMA members have many contractors that work on our sites

-Improving the safety of the industry means that we must also improve the contractor safety on our sites

-One way is using a third party administer to pre-qualify contractors

Contractor Management

-The usage of a contractor management system allows a host steel company to score contractors based upon their safety performance and safety program prior to their working on site

-The contractor management system allows a host steel company to only allow contractors on site that have demonstrated past positive safety performance, and have the safety programs in place to ensure safe job performance

Contractor Safety- ISNetworld

ISNetworld

Cooperative Programs

-2005: Nucor-Hertford (NC) – first steel mill to be recognized as a VPP site

-2007: Nucor Corporation sets goal of all divisions achieving VPP status

-2007: Nucor-Seattle and Nucor-Nebraska become VPP sites

-2008: Nucor presents VPP presentation to SMA Safety Committee Meeting

-2008: Steel Dynamics becomes second steel company to receive VPP status at one of its mills – Butler, Indiana

Cooperative Programs

-11 of Nucor’s 20 steel mills have been granted VPP status, and Steel Dynamics has one (meaning that 12 SMA Member sites are in cooperative programs, and more are exploring)

-Currently, one steel mill is awaiting audit, and two more are close to submitting applications

-Cooperative programs are to be a point of discussion at the September 27-29 SMA Safety Committee Meeting, including an update on VPP status

GAO VPP Report-2009 GAO VPP Report stated that OSHA lacks performance goals and measures to use in assessing the performance of the VPP

-The program continues to be expanded without knowing the effect on employer worksites, such as whether participation in the VPP has improved worker safety and health

Here is what the SMA VPP sites show:

SMA VPP Sites – 2009 YTD

I&I Rate # of Cases LWD Cases Manhours Companies

3.03

1.47

660

43

133

8

43,635,143

5,817,444

SMA total

VPP sites

Health and Safety Management System

-There has been much discussion concerning Health and Safety Management Systems

-Is VPP a management system?

-ANSI Z10 and OHSAS 18001 Health and Safety Management Systems

-Nucor-Indiana and Nucor-Berkeley are two of only three sites in the United States registered to both ANSI Z10 and 18001

ANSI Z10/18001 OHSMS Safety Stats

Companies I&I Rate # of Cases LWD Cases Manhours

3.03

1.47

0.51

660

43

5

133

8

0

43,635,143

5,817,444

1,948,936

SMA total

VPP sites

ANSI Z10 & OHSAS 18001 OHSMS sites

Health and Safety Management Systems

-Z10 and OHSAS 18001 provide specific standards for continual improvement

-To meet one such standard, a system for continual hazard analysis and risk reduction must be created and demonstrated

The OHSMS creates checks and balances to manage one’s safety system via computerized systems

-The system generates email alerts for overdue training, annual reviews, audits, hazard recognition, and abatement

SMA Safety Statistics-What do the SMA statistics show? Improving safety performance throughout SMA’s membership

-What do the VPP site statistics show? A 51% reduction in injuries when compared to the SMA average

-What do OHSMS site statistics show? An 83% reduction of injuries when compared to the SMA average

Conclusions

-The SMA has made great strides, and we will be relentless in our pursuit of continuous improvement until we achieve zero injuries in our workplaces

-A management system provides standards and a system

-OSHA and industry must continue to work together

-The SMA would appreciate your assistance in scheduling a meeting with OSHA policymakers

SMA and OSHA-The SMA through its members has been a driving force in improving safety performance

-We have a great relationship with OSHA that must continue; because as partners, we can make for a safer steel industry