Ipsco Inc. announced plans to further expand its Regina large-diameter pipemaking facility with an additional pipe forming mill and related finishing equipment.

The $52.5-million expansion project will increase the facility’s capacity, productivity and flexibility. Together with a previously announced capacity increase (currently under construction), Ipsco's large diameter spiral pipe capacity will be increased by two thirds to 500,000 tons by early 2008.

A leader in the production and supply of large-diameter oil and gas transmission pipe, Ipsco also has extensive advanced Grade 80 and Grade 100 line pipe installed in North America, including such projects as the El Paso Cheyenne Plains Project (2004) and TransCanada's Stittsville project in (2006). Ipsco has the capability to produce these advanced grades of steel from its mills in Regina, Sask.; Montpelier, Iowa; and Mobile, Ala.

The demand for large-diameter energy gas transmission pipe tends to vary significantly, based on specific projects developed and approved for installation. Ipsco monitors available projects carefully and has invested appropriately where there is an opportunity for additional sales. Over the next few years the demand for such pipe appears to be at the peak of a cycle and near-term capacity is heavily booked.

Ipsco currently has firm commitments for over 300,000 tons of large-diameter line pipe, which will require its mills to operate at capacity through to April 2008. Beyond that period, the company has firm options on over 500,000 tons of large-diameter line pipe, which would commit part of presently available capacity into 2010. The company believes that there are opportunities to commit additional capacity if it is available from a proven source within the current peak cycle. This project is timed to fit that market opportunity.

Ipsco previously announced a 25% increase in spiral-mill capacity through the installation of a coil preparation line, which is scheduled to come on-stream in the second half of 2007. This expansion adds an additional 33% capacity by early 2008, for a combined increase of 67%. The new project is expected to be available earlier than an equivalent greenfield expansion by adding previously acquired equipment to an existing site with an experienced workforce. This will enable Ipsco to commit to orders to capitalize on the current peak market requirements from pipeline transmission companies.

"Ipsco will continue to invest in the pipe and steel technology and appropriate capacity to keep the company at the forefront of the large-diameter line pipe industry on a globally competitive basis," said David Sutherland, Ipsco’s President and CEO. "Our footprint in North America and relationships with key oil and natural gas transmission companies give Ipsco an unparalleled opportunity to continue to be the leader in this business."

Ipsco is a leading low cost producer of energy tubulars and steel plate in North America with an annual liquid steelmaking capacity of 4.3 million tons. The company operates four steel mills, eleven pipe mills, nine product finishing facilities and nine scrap processing centers in 25 geographic locations across the United States and Canada. Ipsco's pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing and tubing, line pipe, drill pipe, large diameter transmission pipe, standard pipe and hollow structurals. The company also manufactures premium connections for oil and natural gas drilling and production under its ULTRA^(TM) brand name.