IPSCO Achieves Steel Production Record; Over Two Million Tons Produced in 2000

Lisle, Illinois, 2 January 2001, IPSCO Inc. (NYSE/TSE:IPS) announced that it had achieved a record production level for liquid steel in the year 2000, with the combined output of its Montpelier, Iowa and Regina, Saskatchewan steelworks reaching 2,020,948 tons.

The company said its best previous level was 1,783,032 tons in 1999. Joe Russo, Senior Vice President and Chief Technical Officer said had it not been for harsh winter weather and a transformer breakdown at Montpelier as well as power curtailments at Regina the number would have been even greater. "Even with ice and snow hampering steel scrap handling, and operating one week at less than full power, our people at Montpelier produced 980,131 tons, an excellent effort under the circumstances. Our more mature steelworks in Regina saved the day by hitting 1,040,817 tons despite power cutbacks in December by the local power company," Russo said.

IPSCO uses the liquid steel to cast huge slabs at each of the operations that are subsequently converted to hot rolled steel coils and discrete plate. "We don't expect the record to last long," Russo added, "our new Mobile, Alabama steelworks is expected to produce its first liquid steel in the first quarter of this year." With the addition of Mobile IPSCO will have a total steelmaking capacity of 3,500,000 tons.

IPSCO said its profits had been adversely affected by the surge of low priced hot rolled steel imports at dumped prices and that it was fortunate to have its own captive customer for some of its steel, in the form of wholly owned pipe mills that use hot rolled coil as a starter material. Among the tubular products IPSCO produces are gas and oil well casing, currently in high demand by those drilling for oil and gas. "While we are fortunate in this regard, IPSCO's profitability has dropped to levels approximately those one would expect from bonds as opposed to equity capital," said Robert Ratliff, Vice President and Chief Financial Officer. He also said that throughout the year the output of the 1,250,000 ton per annum steelworks at Montpelier had been hampered by downtime required to correct equipment problems that are the subject of an ongoing law suit.

This news release contains forward looking information with respect to IPSCO's operations and beliefs. Actual results may differ from these forward looking statements due to numerous factors including weather conditions, mechanical and equipment difficulties, potential markets and demand for the materials produced, market forces, energy pricing, domestic pricing of steel products, level of potential imports, and estimated time of completion of projects. These and other factors are outlined in IPSCO's regulatory filings with the Securities and Exchange Commission, including those on IPSCO's Annual Report for 1999, its MD&A and Form 40-F.

For Further Information Please Contact:
IPSCO Inc.
Anne Parker
Vice President, Trade Policy and Communications
Tel. 630-810-4790
Release 01-01

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