Oregon Steel Mills, Inc.’s Board of Directors has approved the construction of a spiral weld double submerged arc weld (DSAW) pipe making facility at or near its Portland, Ore., mill.

The project, as approved, would consist of two pipe mills with an annual capacity of approximately 150,000 tons, depending on product mix. The new facility would be capable of producing API certified large diameter line pipe from 20 to 60 inches in diameter, in wall thickness of 1/4 to 1 inch, and in lengths of up to 80 feet. The approved budget for the project is approximately $35 million and is expected to be completed during the fourth quarter of 2005.

Jim Declusin, the Company's CEO, stated, "The approval of this project is confirmation of our commitment to the large diameter line pipe business. The placing of the new mill in Portland will make us a much more cost-effective producer of line pipe as well as enhance our production capability and product offering, which are currently restricted to pipe up to 42 inches in diameter. The combination of our existing pipe mills with their straight seam DSAW capability and the proposed spiral mill will position Oregon Steel to offer both types of pipe making technology to the market that no other single producer in North America has today."

Oregon Steel Mills, Inc. is organized into two divisions. The Oregon Steel Division produces steel plate, coil, welded pipe and structural tubing from plants located in Portland, Ore.; Napa, Calif.; and Camrose, Alta., Canada. The Rocky Mountain Steel Mills Division, located in Pueblo, Colo., produces steel rail, rod, bar, and tubular products.