Steelmaker hikes pipe mill capacity

Illinois-based steelmaker IPSCO is chasing oilfield business by expanding its two pipe mills in Canada.

As part of a US$100 million capital budget for 2005, the company will modify its Calgary and Regina operations to gear up for “further growth in energy tubular product markets by taking advantage of the increased North American demand for high-grade heat-treated products,” said IPSCO Senior Vice President Joe Russo.

The Calgary mill expansion is targeted for completion by year-end and will increase heat-treat capacity by more than 70 percent.

IPSCO reported tubular sales of $492 million in the first half of 2005, shipping 461,000 tons, of which 75 percent represented “energy tubulars.”

IPSCO has three steel mills and six pipe mills in Canada and the United States.

—Gary Park