IPSCO Announces Construction of a Tubular Heat Treating Facility in the United States
Lisle, Illinois, January 23, 2007 - IPSCO Inc. (NYSE/TSX:IPS) announced today the construction of an oil country tubular goods (OCTG) heat treat facility adjacent to its Blytheville, Arkansas pipe mill.
The new facility will produce heat treated OCTG in 2 3/8" through 5
1/2" diameters. Commercial production is expected to begin in the third quarter of 2007. The cost of the heat treat facility is approximately $40 million.
The facility will increase the Company’s OCTG heat treat capacity by an additional 100,000 tons annually. Combined with the previously announced heat treat facility in Baytown, Texas and existing heat treat capacity in Calgary, Alberta; Catoosa, Oklahoma; and Koppel and Ambridge, Pennsylvania; IPSCO’s total tubular heat treat capacity will increase to 575,000 tons annually.
"The additional capacity is designed to position IPSCO for further growth in value-added energy tubular product markets by taking advantage of the growing demand for high grade heat treated
products," said Joseph Russo, Senior Vice President and Chief Technology Officer.
"In addition, we believe this expansion will enhance our competitive position in the United States and better serve our customers through expanded product
offerings," noted Russo.
IPSCO, traded as “IPS” on both the New York Stock Exchange and Toronto Stock Exchange, operates steel mills at four locations and pipe mills at eight locations in the United States and Canada. IPSCO is a low cost North American steel producer, and has a combined annual steel making capacity of 4,300,000 tons. Steel can also be further processed at IPSCO's five temper leveling or coil processing facilities. The Company's tubular facilities produce a wide range of seamless and welded tubular products including oil and gas well casing and tubing, line pipe, standard pipe and hollow structurals. IPSCO also manufactures premium connections for oil and natural gas drilling and production under its ULTRA product brand name.
This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believes”, “expect”, “will”, “can” and other expressions that are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements. Although IPSCO Inc. believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include: 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 2005 Form 10-K, particularly as discussed under the heading "Statement Regarding Forward Looking Information” and “Risk Factors Related To Our Industry”. The Company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
Company Contact:
Tom Filstrup
Director of Investor Relations
Tel. 630-810-4772
tfilstrup@ipsco.com
Release 07-02
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