IPSCO Inc.-Establishes Operational Headquarters in Chicago
18 January 1999
IPSCO Inc.-Establishes Operational Headquarters in Chicago for IPSCO Enterprises
REGINA, SASKATCHEWAN--Jan. 15, 1999--(TSE:IPS.) (Alberta Stock Exchange:IPS.) IPSCO Inc. announced today that it would establish an operational headquarters in Chicago for IPSCO Enterprises Inc., its U.S. holding company subsidiary. The office will direct activities of the various IPSCO operating subsidiaries in the United States which had heretofore been handled by personnel at Montpelier, Iowa or the Regina head office.
The new office will employ approximately 40 people and will be established during the third quarter of the year 2000. The office will be primarily staffed by transferring personnel from other U.S. locations of IPSCO and from Regina. The long lead time is required to ensure that appropriate immigration procedures for Canadian transferees can be dealt with in a thorough fashion.
IPSCO Inc.'s legal head office will remain in Regina as well as the operational headquarters for IPSCO's Canadian activities which includes the direct management of Canadian tubular plants in Alberta and Regina, IPSCO's coil processing facilities in Regina and Surrey, B.C., and IPSCO Saskatchewan Inc. which directs IPSCO's Canadian steelmaking operations. IPSCO's corporate research and development facility, situated in Regina, will continue to serve IPSCO facilities in both Canada and the United States. After projected transfers of approximately 20 Regina employees to Chicago these activities will continue to employ about 140 persons, over and above some 800 people engaged in IPSCO's production activities at the Regina Steelworks and the Regina pipemaking operations.
"IPSCO has, and will continue to have, a long-standing commitment to Saskatchewan", said Roger Phillips, President and Chief Executive Officer of IPSCO Inc. "This change is driven by the increasing scale and maturity of our operations in the United States". With production facilities operating or underway at seven locations in six states quick access via conveniently scheduled air transport has become an imperative.
While expanding in the U.S. at locations such as Mobile, Alabama; Houston, Texas; and Blytheville, Arkansas IPSCO has continued to invest in Regina. In the 1990s it moved a large diameter pipe mill from Edmonton to Regina, built a new facility to produce up to 24-inch diameter electric resistance welded pipe, upgraded its large diameter facilities to enable the production of high pressure gas transmission pipe, built a stand-alone coil processing facility, and is currently completing the installation of a new ladle metallurgy furnace in the Regina Steelworks.
"In the last two years alone we have spent over $100 million in capital expenditures at Regina", said Ed Tiefenbach, Vice President and Chief Financial Officer.
Roger Phillips who, in addition to being President and Chief Executive Officer of IPSCO Inc., is also Chairman and Chief Executive Officer of IPSCO Enterprises will maintain an office in both Regina and Chicago but will remain resident in Regina. In cases where personnel directed both Canadian and U.S. businesses but where the prime importance is related to the American part of IPSCO some functions will also be directed from the new Chicago office.
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 those discussed in IPSCO's 1997 Annual Report for its fiscal year ended December 31, 1997.
FACT SHEET
IPSCO Operating Locations
(excludes headquarters and stand-alone sales facilities)
Estimated
Employees at
Annual Capacity (Tons) Capacity
---------------------- ------------
CANADIAN OPERATIONS
-------------------
Steelmaking
-----------
Regina 1,000,000 425
Coil Processing
---------------
Regina 150,000 15
Surrey, B.C. 150,000 25
Toronto 300,000 40
Tubular Production
------------------
Regina 578,000 375
Calgary 300,000 200
Edmonton(x) 224,000 100
Red Deer 155,000 125
U.S. OPERATIONS
---------------
Steelmaking
-----------
Montpelier, Iowa 1,250,000 250
Mobile, Alabama(xx) 1,250,000 250
Coil Processing
---------------
St. Paul, Minnesota 200,000 35
Houston, Texas(xx) 300,000 40
Tubular Production
------------------
Camanche, Iowa 225,000 150
Geneva, Nebraska 120,000 60
Blytheville, Arkansas(xx) 300,000 80
(x)currently idle
(xx)under construction