IPSCO Inc. Announces Closure

26 July 1999

IPSCO Inc. Announces Closure

    REGINA, Saskatchewan--July 26, 1999--IPSCO Inc. (TSE:IPS.) announced today the permanent closure, effective 24 August, of its Edmonton, Alberta pipemaking facility, which has seen only intermittent use since 1982.
    IPSCO said the ongoing fixed cost of maintaining the infrequently used facility could no longer be justified. In recent years the plant has produced an average of less than 40,000 tons per annum and from 1995 to date in 1999 employment has averaged under 49 man years annually. "The closure will neither impair our ability to serve the Western Canadian tubular products market where we have annual pipemaking capacity exceeding one million tons at Calgary and Red Deer in Alberta and at Regina, Saskatchewan," said Ed Tiefenbach, IPSCO Vice President and Chief Financial Officer, "nor will the decision require a material book write down as an accrual providing for the facility's eventual closure was made in 1990."
    IPSCO will put the land occupied by the Edmonton plant up for sale and the proceeds are expected to exceed book value, a spokesman said. The equipment will be transferred to other IPSCO locations or sold.
    IPSCO Vice President Tiefenbach pointed out that the company continuously examines the viability of its operations and in the last twenty years has closed or sold operations in Port Moody, B.C.; Brooks, Alberta; Brookshire, Texas; and the Calgary plant of Western Steel, and IPSCO subsidiary, while starting or acquiring new operations in Calgary and Red Deer, Alberta; Camanche and Montpelier, Iowa; Geneva, Nebraska; Toronto, Ontario; Blytheville, Arkansas; St. Paul, Minnesota: Houston, Texas; and Mobile, Alabama.
    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 1998 Annual Report for its fiscal year ended December 31, 1998.