IPSCO Experiences Plate Finishing Equipment Outage

Lisle, Illinois, 13 August 2002 - IPSCO Inc. (NYSE/TSX: IPS) advised today that its Montpelier Steelworks incurred a mechanical failure on the static shear equipment, which cuts plate product to final length. The breakdown will not impact this plant’s ability to produce coil, and although plate output will be slowed in Montpelier, overall IPSCO production of plate should remain as scheduled. The shear experienced damage that renders it inoperable for a period of time. In the interim repair period, manual cutting, offline, will be undertaken augmented by production at alternate IPSCO locations. Total company-wide third quarter production, driven by a full order book, should therefore remain unchanged. 

Richard Acquaviva, Executive Vice President of IPSCO Steel Inc., the operating subsidiary for the Montpelier Steelworks, stated, “First it is important to note there were no injuries associated with this incident. We are in the process of assessing the extent of damage to the shear but are unable to determine at this time the precise mode and duration of the repair, although it is currently anticipated that the equipment will be back on line prior to the end of the third quarter. The versatility of Montpelier and the rest of the IPSCO production facilities will minimize both the effect upon our customers and output. IPSCO’s overall geographic coverage will allow a shift of production to alternate facilities, if needed, to ensure customer service.” 

Higher production costs, associated with repairs as well as additional charges that might be incurred to ensure service to customers, are expected. A full investigation of remedial measures that can be undertaken is being conducted with a view to reducing costs and downtime. IPSCO anticipates that any material losses will be covered by insurance.

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, production levels, ability to fulfill order book, extent of damage, length of time to complete repairs, and recovery of insurable costs.

Company Contact: 
Bob Ratliff
Vice President and Chief Financial Officer
IPSCO Inc.
Tel. 630-810-4769
Release #02-25

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