Ipsco reported that its Mobile, Ala., Steelworks sustained minimal damage from Hurricane Katrina, and was able to return to normal production levels within two days.

Ipsco expects to maintain its normal production output and meet established schedules for existing orders. Alternate sources of critical materials and supplies have been arranged where required.

Ipsco says it will fill and ship existing orders consistent with the facility’s ability to obtain transportation from the mill. Significant damage to the Gulf region's distribution infrastructure has disrupted the normal flow of inbound and outbound freight. In particular, barge and rail service to the West was severely impacted by Katrina and must be rerouted, while service to the East and North are near normal levels. Availability of truck transportation has been affected by the shortage of fuel and increased demand caused by the disruption of barge and rail service.

Together with its transportation providers, the company is making every effort in the short term to ensure that its key customers have adequate supplies of steel to meet their production needs. "It is difficult at this time to estimate the precise financial impact that Hurricane Katrina will have on the company's performance," said John Tulloch, Ipsco’s Executive Vice President—Steel and Chief Commercial Officer. "We do expect to experience some cost increases at our Mobile, Ala., facility; however, it is impossible at this time to assess how this might impact the company's overall performance."

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 steelmaking 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.