Ipsco Inc. announced it will invest $3.5 million to set up a state-of-the-art research unit dedicated to accelerating development of the company's large-diameter capability. The specialized research capability will be used to focus on the specific steel and pipe needs for large diameter energy transmission lines, further extending Ipsco's current knowledge in this area.

Ipsco’s new unit will also be utilized to conduct research work related to other energy tubular products such as casing and tubing for frontier environments and other advanced energy sector steel products.

"It is our goal to remain at the forefront of technology to enable the company to supply the complex specialty grade steel and pipe required for large pipeline projects, with a specific emphasis on northern environments such as the proposed MacKenzie Valley," said Joe Russo, Senior Vice President and Chief Technical Officer. "Ipsco has been a leader in northern pipeline activity dating back to the mid-1970s and has been a major participant in all significant large diameter pipeline projects in Canada since that time. Today's announcement is an enhancement to our proven track record in producing steel and pipe for the North American energy market and we feel well positioned to continue as a leader in advanced steel and line pipe development," said Russo.

A steering committee including Ipsco's Dr. Steve Hansen, Dr. Milos Kostic, Dr. Dengqi Bai, Tom Lawrence, MSc., as well as experts from outside organizations such as universities, energy sector exploration, development and pipeline companies and retained technical experts, will help direct the Unit.

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, for a combined annual capacity of 1,725,000 tons. Steel can also be further processed at Ipsco's five temper leveling and coil processing facilities.