Ipsco Inc. announced the construction of an oil country tubular goods (OCTG) heat treat facility adjacent to its Blytheville, Ark., pipe mill.

The new facility will produce heat-treated OCTG in 2-3/8 through 5-1/2-inch diameters. It will increase the company's OCTG heat treat capacity by an additional 100,000 tons annually.

The new facility joins Ipsco’s previously announced new heat-treat facility in Baytown, Texas, plus existing heat treat capacity in Calgary, Alta.; Catoosa, Okla.; and Koppel and Ambridge, Pa. Altogether, 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.

The cost of Ipsco’s new heat-treat facility is approximately $40 million. Commercial production is expected to begin in the third quarter of 2007.