Ipsco announced it will expand the current oil country tubular goods (OCTG) heat treat capacity at its Calgary, Alberta plant. The expansion will begin immediately and is expected to be fully implemented before year-end. Annual capacity of the Calgary heat treat facility will be increased by more than 70%.

Ipsco also announced it will increase its casing product range through modifications to tubular operations at both the Calgary and Regina, Sask., pipe mills. The product range improvements will enhance production of casing from the current 4-1/2 to 9-5/8 inch diameters to include additional diameters from 10-3/4 through 13-3/8 inch in high collapse, N, L, P and Q grades, as well as Ipsco proprietary grades. The enhancements will also include equipment and process modifications to enable production of heat treated tubing in 2-3/8 through 3-1/2 inch diameters. The necessary equipment and process modifications are expected to be complete in the fourth quarter of 2005, with full production expected in the first quarter of 2006.

"The improvements are designed to position Ipsco for further growth in energy tubular product markets by taking advantage of the increased North American demand for high grade heat treated products," said Joe Russo, Senior Vice President of the company. "In addition, we are recognized across North America for our experience and dependability due to our proven track record within the energy tubulars industry. We believe these improvements will better serve our customers through expanded product options," noted Russo.

The cost of expanding the OCTG heat treat capacity and expanding the casing product range are included in the previously disclosed 2005 capital expenditure forecast of approximately $100 million.

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 1,775,000 tons. Steel can also be further processed at Ipsco's five temper leveling and coil processing facilities.