IPSCO To Invest $45 Million In Plate And Pipe Upgrades
Lisle, Illinois, February 16, 2006 - IPSCO Inc. (NYSE/TSX: IPS)
announced today two new capital investments to improve both its
steel and its pipe making capabilities and to further extend the
ongoing development of the Company’s range of value added
products.
As part of its planned capital expenditures for 2006, the Company
has approved the expenditure of $17.7 million for the installation
of a vacuum degasser at its Montpelier, Iowa Steelworks to provide
a more sophisticated and extensive range of steel products. The
vacuum degasser is a metallurgical refining process, which allows
production of ultra-low hydrogen steel with superior cleanliness.
When installed, the vacuum degasser will help meet growing demand
for construction applications such as heavy equipment and bridge
manufacturing and for higher strength large diameter line pipe
steels.
In a second planned investment for 2006, the Company has also
approved an expenditure of $27.5 million on a coil preparation
facility and other related enhancements to its large diameter
spiral pipe mill operations located in Regina, Saskatchewan. The
new prepping area and equipment modifications will improve yield
and productivity, as well as increase capacity in excess of 25%
from these mills. Upon completion of the project, IPSCO's annual
large diameter capacity, which is dependent on varying pipe
diameters, may exceed 375,000 tons.
"Both of these enhancements are further evidence of the
Company’s ongoing commitment to both extend the range of its
value added production activities and to expand the capacity of
its tubular facilities" said Joseph Russo, Senior Vice
President and Chief Technical Officer. "In addition, the
upgrades to our spiral mill operations will help the Company
maintain its leading position in North American large diameter
tubular production."
Both the vacuum degasser and coil preparation facility are
expected to be operating by third quarter 2007.
IPSCO, traded as "IPS" on both the New York Stock
Exchange and Toronto Stock Exchange, operates steel mills at three
locations and pipe mills at six locations in the United States and
Canada. As a low cost North American steel producer, IPSCO has a
combined annual steel making capacity of 3,500,000 tons. The
Company's tubular facilities produce a wide range of tubular
products including line pipe, oil and gas well casing and tubing,
standard pipe and hollow structurals. Steel can also be further
processed at IPSCO's five temper leveling and coil processing
facilities.
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, but not limited to: weather conditions
affecting the oil patch; drilling rig availability; demand for oil
and gas; supply, demand and price for scrap metal and other raw
materials; supply, demand and price for electricity and natural
gas; demand and prices for products produced by the Company;
general economic conditions; and changes in financial markets.
These and other factors are outlined in IPSCO's regulatory filings
with the Securities and Exchange Commission and Canadian
securities regulators, including those in IPSCO's Annual Report
for 2004, its MD&A, particularly as discussed under the
heading "Business Risks and Uncertainties", its Annual
Information Form, and its Form 40-F.
Investor
Contact:
Tom Filstrup
Director, Investor Relations
Tel. 630-810-4772
tfilstrup@ipsco.com |
Media Contact:
John Comrie, QC
Director, Trade Policy and Communications
Tel. 630-810-4730
jcomrie@ipsco.com |
Release 06-04 |
