Feb. 17, 2006 — Ipsco Inc. announced two new capital investments 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 produce an extensive range of steel products with ultra-low hydrogen and 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, Sask. The new prepping area and equipment modifications will help to 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 the third quarter of 2007.

Ipsco 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.