IPSCO builds $40M tubular goods heat-treating facility

IPSCO Inc. announced January 24 the construction of an oil country tubular goods (OCTG) heat-treat facility adjacent to its Blytheville, Ark., pipe mill.

The new facility will produce heat treated OCTG in 2 3/8-inch through 5 1/2-inch diameters. Commercial production is expected to begin in the third quarter of 2007. The cost of the heat-treat facility is approximately $40 million.

The facility will increase the company's OCTG heat-treat capacity by an additional 100,000 tons annually. Combined with the previously announced heat-treat facility in Baytown, Texas, and existing heat treat capacity in Calgary, Alberta; Catoosa, Okla.; and Koppel and Ambridge, Pa., IPSCO's total tubular heat-treat capacity will increase to 575,000 tons annually.

"The additional capacity is designed to position IPSCO for further growth in value-added energy tubular product markets by taking advantage of the growing demand for high grade heat treated products," said Joseph Russo, senior vice president and chief technology officer. "In addition, we believe this expansion will enhance our competitive position in the United States and better serve our customers through expanded product offerings."

IPSCO operates steel mills at four locations and pipe mills at eight locations in the United States and Canada. IPSCO is a low-cost North American steel producer, and has a combined annual steel making capacity of 4.3 million tons. Steel can also be further processed at IPSCO's five temper leveling or coil processing facilities. The company's tubular facilities produce a wide range of seamless and welded tubular products including oil and gas well casing and tubing, line pipe, standard pipe and hollow structurals. IPSCO also manufactures premium connections for oil and natural gas drilling.