Oregon Steel Mills, Inc. announced that it will reopen the seamless mill at its Rocky Mountain Steel Mills plant in Pueblo, Colo.

The seamless mill, which has been idle since November 2003, is equipped to produce tubular products from 5-1/2 to 10-3/4 inches in diameter. It has an annual capacity of 150,000 tons, depending on product mix, and can produce seamless casing, coupling stock, and standard and line pipe. The mill’s production capability includes both carbon and heat-treated tubular products. Production is expected to begin in December of 2005 at an annual rate of 100,000 tons with an emphasis on quench and temper seamless casing products.

In conjunction with the reopening of the seamless mill, Oregon Steel has reached an agreement in principle with Colorado Seamless Corp., whereby Colorado Seamless will purchase all of the seamless mill’s output. Colorado Seamless’ parent company, OCTG, will perform full-length ultrasonic testing on the product as part of the manufacturing quality control program. Colorado Seamless will ship the product to the OCTG facility in Houston, where the remainder of the end-finishing process will take place.

Oregon Steel also announced that it has entered into an agreement with a Canadian investment group to construct a facility at the company's pipe mill in Camrose, Alta., Canada. The new facility will be capable of manufacturing, selling and servicing coiled tubing products. Oregon Steel, through a subsidiary, will own 51% of the joint venture and will be the managing partner.

Jim Declusin, the company's President and CEO, stated, "We are very excited about the reopening of the seamless mill and the coiled tubing venture. The investments being made in these product lines will enable us to offer more value-added specialty products that will compliment our current offerings of energy-related products as well as our specialty plate, rail and rod and bar products. With the startup of the seamless and coiled tubing mills and the expected commissioning of the new large diameter pipe mill in Portland, Ore., in the first quarter of 2006, we will have approximately 650,000 tons of production capacity dedicated to the oil country tubular goods and line pipe markets. As a result of today's energy prices, we anticipate that the high level of exploration and production activity will continue and should result in increased demand for all of our energy-related products. Assuming that selling prices remain favorable, we expect the energy part of our business to record strong financial performance into the foreseeable future."

Oregon Steel anticipates that construction of the coiled tubing facility will be completed in the first quarter of 2006. Once operational, the joint venture will be the only manufacturer of coiled tubing products located in Canada.

Colorado Seamless Corp. is an affiliate of OCTG, LLP of Houston, Texas.

Oregon Steel Mills, Inc. is organized into two divisions. The Oregon Steel Division produces steel plate, coil, small and large diameter line pipe, casing and structural tubing from plants located in Portland, Ore., and Camrose, Alta., Canada. The Rocky Mountain Steel Mills Division, located in Pueblo, Colo., produces steel rail, rod and bar, and seamless tubular products.