[Financial and Operating Highlights]
[IPSCO Product At-a-Glance]
[Features]
[Letter to our Shareholders]
[Letter from our Chairman]
[Governance at IPSCO]
[Our Responsibilities]
[Financial and Operating Review]
[Shareholder and Corporate Information]
[Shaping Their Future]
[Form 10-K]
[Printed Version]
Letter to our Shareholders page 2/3
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A slab at IPSCO's Mobile Steelworks is readied for further processing. Mobile has the capacity to heat treat 170,000 tons of steel a year, part of our strategy to add more value to IPSCO's product mix.



ADDING MORE VALUE
At the same time, we continue to improve our prospects by adding more value to our products. Revenue per ton sold reached a record $928 in 2006 and this important metric has more than doubled in the past four years. Our customers are looking for higher performance steels with advanced chemical and physical properties and we strive to meet those needs. Early in the year, we announced a $17.7 million installation of a vacuum degasser in Montpelier that will enable us to produce ultra-low hydrogen steel for more demanding applications. We also continued to reap commercial benefits from the work of IPSCO's Frontier Pipe Research Unit, the only industry research facility that is principally focused on the development of advanced steel for sophisticated large diameter pipe applications. Aided by these efforts, IPSCO became the first North American steel producer to supply Grade X100 pipe. In December, we finalized the aforementioned acquisition of NS Group, which greatly advanced our value-added and diversification strategies by adding a wide range of seamless energy tubulars and premium oilfield connections to our product mix. NS Group itself had already initiated a $98 million program to increase its seamless pipe and heat treating capabilities.

IMPROVING OUR OPERATIONS
Proactively shaping the future also requires that we extend our leadership as a high quality, low-cost producer. From an operating perspective, we continued to break prior records in 2006 including vital measures such as total throughput, yield and man-hours per ton.

This performance rests on some very powerful competitive advantages. All of our steelworks feature mini-mill technology, which converts scrap to liquid steel with significant savings in labor, raw material and energy costs. We are also considered a leader in Steckel mill technology, which allows us to switch production between coil and a wide variety of discrete plate products in response to changing market opportunities. IPSCO's unique operating structure - with fully integrated platforms in plate and pipe - is another plus. Both our history and our strategic direction are based on integration along a single value chain from raw materials through steel making and processing. This allows us to optimize production, control quality and enhance margins at every step.

Even more important, IPSCO's operating performance has been accompanied by an unwavering commitment to safety and the environment. We reported the lowest lost time injury frequency rate in our Company's history during 2006 - 0.09 cases per 200,000 hours worked - while achieving record production and productivity.

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This is an interactive electronic version of IPSCO's 2006 Annual Report, and it is intended to be complete and accurate. The contents of this version are qualified in their entirety by reference to the printed version. A reproduction of the printed version is available in PDF format on this Web site.