IPSCO Pleased With ITC Findings in 201-Safeguard Action

Lisle, Illinois, 23 October 2001 - "Yesterday's ruling by the U.S. International Trade Commission is like Christmas come early," said Roger Phillips, President and Chief Executive Officer, IPSCO. The ITC ruled that increased steel imports of steel slabs, plate, hot-rolled sheet, strip and coils, cold-rolled sheet and strip, and corrosion-resistant and coated sheet and strip are a substantial cause of serious injury, or threat of serious injury, to the U.S. industry. "The ruling will have substantial medium and long term impact on the results of IPSCO if the President implements remedies that serve to deal with the issue effectively," Phillips added.

"As we proceed to the remedy phase of the 201 case IPSCO will continue to supply as much pertinent information as possible to the ITC," Phillips stated. The result of such a remedy could be to substantially reduce the levels of steel being imported to the U.S. "Such a reduction would be expected to improve pricing levels and cash generation for IPSCO. Additionally, IPSCO would be in a position to return to more normal levels of capital investment," Phillips concluded.

With respect to findings that are important to IPSCO's core product line in the U.S. and Canada the findings were extremely favorable. IPSCO, as a steel producer, specializes in plate and hot-rolled coil. "The unanimous decision on the issue of injury to these products is extremely important," stated Phillips. "In addition, the unanimous finding on slabs, which had previously been a loop hole under which imported products were able to enter the U.S., even in the light of trade remedies being applied to the products into which they were transformed, sent a strong message that the ITC understands the genesis of the steel problems."

The ITC finding regarding oil country tubular goods, which IPSCO produces in the U.S., was disappointing to the company. "A finding of no injury is difficult to understand in an environment where the volume of imports has caused pricing and profitability to drop precipitously," said Phillips. 

The omnibus grouping of all other welded tubular products which includes standard pipe, hollow structural sections, piling pipe, water well casing, water transmission pipe and large diameter line pipe for oil and gas transmission is an unusual mix of products that are utilized in very dissimilar environments. The tie vote regarding the importance of injury caused by Canada in these products will require further investigation to determine the implications. The bulk of these products produced by IPSCO are made in the U.S. for U.S. markets and in Canada for Canadian markets. 

Concurrently with the safeguard action, the Administration has been pursuing the remaining parts of the comprehensive steel policy initiative announced by the President and has entered into trade discussions with other steel-producing nations. Such discussions could result in agreements to ensure that global capacity is tailored to meet demand and that trade distorting practices are curtailed. Phillips noted that, "If fruitful, the agreements could have the potential to further improve IPSCO's financial situation."

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 the speed with which the ITC makes its remedy report, the conduct of exporting countries, the Presidential remedy decision, the geographic application of such a remedy, and the demand for steel in the U.S. 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 2000, its MD&A., particularly as discussed under the heading "Business Risks and Uncertainties", and Form 40-F.

Company Contact: 
Anne Parker
Vice President, Trade Policy and Communications 
Tel. 630-810-4790
Release 01-42

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