Ipsco Inc. is proceeding with the construction of a world-class steel plate heat treating complex, subject to completing certain contracts.

The new Heat Treating facility will be located at one of Ipsco's two U.S. Plate Mills and will process steel made in the company's facilities. The final decision on location will be based on consideration of site-specific issues, including regulatory approvals. The complex is expected to be in commercial production by early 2006.

The facility will produce both quenched and tempered (Q&T) and normalized steel plate and is part of the company's strategic direction to increase its value added mix and to better meet the needs of its customers. The Q&T product will range in thicknesses up to 1 inch thick and widths up to 100 inches wide. Normalized product will be up to 3 inches thick and 120 inches wide. Both lines will produce the full range of grades currently used in the market together with proprietary grades.

"We are delighted to be able to provide this value-added processing to our customers," said David Sutherland, Ipsco President and CEO. "After the dramatic changes in the plate industry through the past decade, Ipsco is pleased to be able to bring a modern alternative supply capability to the specialized heat treated plate market. We have strong indications of customer support for this facility, which has justified the decision to proceed," he concluded.