Ipsco Inc. will build its new continuous plate heat treating operation in Mobile, Ala.

The $45,000,000 facility will produce 170,000 tons per year of quenched and tempered or normalized plate, ranging in thickness from 3/16 to 3 inches at widths up to 123 inches. Ipsco selected the line’s size range and capacity to match the available supply void in North America. The 140,000 square foot greenfield site facility will include a fully automated shot blast station, hot leveler, stenciler and shear.

"While this capacity will reduce the availability of as-rolled plate from the Mobile Steelworks, it will add to the company's strategy of providing value-added capability to the market," said John Tulloch, Executive Vice President, Steel.

"We have strong customer commitments and we are very pleased to be working with LOI to complete this facility. Ipsco has had a very positive experience building and operating its steel operations in Mobile and the support of customers, regulatory authorities, employees and the community has justified locating this new processing line in Alabama," he continued.

Based on agreed schedules the Normalizing Line is expected to start operations in fourth quarter of 2005 and the Quench and Temper Unit in first quarter of 2006.

Ipsco operates steel mills at three locations and pipe mills at six locations in Canada and the United States. 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.