Production levels for Prudential are determined by the demand of the North American oil and gas industry. Unfairly traded imports of OCTG (oil country tubular goods) and line pipe, and corresponding high inventories of these products along with the persistent low price of oil and consequential reduction in drilling activity, have driven Tenaris to make this decision. While the recent injury finding made by the Canadian International Trade Tribunal against dumped OCTG from nine countries should assist market improvement, imports of unfairly traded line pipe will continue to be a problem.

Tenaris has communicated to the employees as quickly as possible and has informed the Union, in accordance with the Collective Agreement in place. Tenaris will recall unionized and non-unionized employees at a level that matches market demand as conditions improve.

Tenaris is adjusting the production of its facilities to position the company for sustainable and long-term growth in the Canadian market.