IPSCO Finalizes Location And Supplier For Its Plate Heat Treating Operation

Lisle, Illinois, October 20, 2004 - IPSCO Inc. (NYSE/TSX: IPS) announced today it has selected Mobile, Alabama as the location to build its new continuous plate heat treating operation, which will be one of the most modern facilities of its kind in the world. In addition, the Company also announced it has awarded the major contract for the design and supply of equipment to LOI Inc. of Pittsburgh, Pennsylvania.

The $45,000,000 facility will produce 170,000 tons per year of heat treated plate, quenched and tempered or normalized, ranging in thickness from 3/16" to 3" at widths up to 123". The size range and capacity of the line have been sized to fill the available supply void in North America. The 140,000 sq. ft. greenfield site facility will include a shot blast station, hot leveler, stenciler and shear, all of which will be fully automated.

As part of the contract with LOI Inc., process technology for the furnaces and the quench will be provided by LOI Thermprocess of Essen, Germany, which over the past 15 years, has provided 90% of the world’s plate heat treat lines and currently has three finalized contracts in-house for projects in Egypt and China with two others under negotiation, both in Asia. 

“While this capacity will reduce the availability of as-rolled plate from the Mobile Steelworks, it will add to the Company’s strategy of providing value-added capability to the market” said John Tulloch, Executive Vice President, Steel. “We have strong customer commitments and we are very pleased to be working with LOI to complete this facility. IPSCO has had a very positive experience building and operating its steel operations in Mobile and the support of customers, regulatory authorities, employees and the community has justified locating this new processing line in Alabama” he continued.

Based on agreed schedules the Normalizing Line is expected to start operations in fourth quarter of 2005 and the Quench and Temper Unit in first quarter of 2006.

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 steel making 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. 

This news release contains forward-looking information with respect to IPSCO’s operations and beliefs. Actual results may differ from these forward-looking statements due to numerous factors, including, but not limited to, weather conditions affecting the oil patch; drilling rig availability; demand for oil and gas; supply, demand and price for scrap metal and other raw materials; supply, demand and price for electricity and natural gas; demand and prices for products produced by IPSCO; general economic conditions and changes in financial markets. These and other factors are outlined in IPSCO’s regulatory filings with the Canadian securities regulators and the Securities and Exchange Commission, including those in IPSCO’s Annual Report for 2003, its MD&A, particularly as discussed under the heading “Business Risks and Uncertainties,” its Annual Information Form, and its Form 40-F.

Company Contact:
Vicki Avril
Senior Vice President and Chief Financial Officer
Tel. 630-810-4769
Release 04-38
  
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