Feb 17 2006
IPSCO Inc. announced today two new capital investments to improve both its steel and its pipe making capabilities and to further extend the ongoing development of the Company’s range of value added products.
As part of its planned capital expenditures for 2006, the Company has approved the expenditure of $17.7 million for the installation of a vacuum degasser at its Montpelier, Iowa Steelworks to provide a more sophisticated and extensive range of steel products. The vacuum degasser is a metallurgical refining process, which allows production of ultra-low hydrogen steel with superior cleanliness. When installed, the vacuum degasser will help meet growing demand for construction applications such as heavy equipment and bridge manufacturing and for higher strength large diameter line pipe steels.
In a second planned investment for 2006, the Company has also approved an expenditure of $27.5 million on a coil preparation facility and other related enhancements to its large diameter spiral pipe mill operations located in Regina, Saskatchewan. The new prepping area and equipment modifications will improve yield and productivity, as well as increase capacity in excess of 25% from these mills. Upon completion of the project, IPSCO's annual large diameter capacity, which is dependent on varying pipe diameters, may exceed 375,000 tons.
"Both of these enhancements are further evidence of the Company’s ongoing commitment to both extend the range of its value added production activities and to expand the capacity of its tubular facilities" said Joseph Russo, Senior Vice President and Chief Technical Officer. "In addition, the upgrades to our spiral mill operations will help the Company maintain its leading position in North American large diameter tubular production."
Both the vacuum degasser and coil preparation facility are expected to be operating by third quarter 2007.