Dear Customer,

Since the beginning of our cooperation, we have consistently prioritized supporting your company’s carbon reduction goals as a core element of our supply chain services. In the first quarter of 2026, we made significant progress on several key initiatives:

1. Expansion of Low-Carbon Mill Partnerships
We have onboarded two additional seamless steel pipe mills capable of direct green electricity supply, increasing the share of green power in our production portfolio to 40%.

2. Strengthened Carbon Data Accounting Capabilities
In collaboration with a third-party carbon verification body, we are now able to provide carbon data report templates that fully comply with EU ETS (European Union Emissions Trading System) requirements.

3. Pilot Project Achievements
A recent pilot project involving 300 tons of pipeline steel—produced using electric furnace billets + green electricity—achieved a carbon emission intensity of just 0.65 tCO₂ per ton of steel, compared to the industry average of 2.2 tons. This represents a 70% reduction in carbon emissions.

Next Steps: “30% Carbon Reduction Product Line”
Building on this momentum, we are launching the “30% Carbon Reduction Dedicated Product Line” in collaboration with our partner mills. By securing dedicated green power capacity, we aim to ensure that the steel pipes procured by your company in the second half of 2026 achieve an additional 10% to 15% reduction in carbon footprint.

We remain committed to providing transparent, verifiable, and increasingly low-carbon solutions that align with your sustainability targets.

Should you have any specific requirements or wish to discuss how these developments can support your upcoming projects, please do not hesitate to contact us.