(TSX: SCL.A, SCL.B) TORONTO, Oct. 10 /CNW/ - SHAWCOR LTD. (TSX: SCL.A, SCL.B) today announced that its Canadian subsidiary, Shaw Pipe Protection Limited., will invest $30 million in a major program to add pipe coating capacity in Western Canada. This program, resulting from the termination of the Garneau acquisition, will add the necessary coating capacity required to meet the rapidly growing demand for pipe coatings including insulation coatings for the Tar Sands projects as well as large diameter transmission pipe line projects. The investment includes three primary components: the construction of a new state-of-the-art coating plant in Camrose, Alberta on a recently acquired 130-acre site adjacent to Shaw Pipe Protection's existing coating facility, the construction of a new rail spur at Camrose to double transportation capacity, and upgrades to increase the capacity of the existing Camrose coating plant. Completion of this program, which is expected by the end of the second quarter 2007, will significantly reduce lead times, meet the growing demand for insulated pipelines in the Tar Sands region, and also enable other Alberta facilities of Shaw Pipe Protection to become more focused and efficient. Shaw Pipe Protection remains committed to provide customers with the highest level of quality, service, delivery, safety, innovation and value. This expansion program will help us maintain the levels of service which our customers expect. When this program is complete, Shaw Pipe Protection will have the capacity and capability to produce Insul-8(R), Yellow Jacket(R), Fusion Bonded Epoxy, SureFlo(R) FEC (internal flow efficiency coating), High Performance Composite Coating (HPCC(R)), railcar loading and other large diameter project services from Camrose. ShawCor Ltd. is an energy services company specializing in products and services for the pipeline, exploration and production, and downstream sectors of the energy industry wherever these products and services are required. Shaw Pipe Protection Ltd is a wholly-owned unit of Bredero Shaw, ShawCor's largest division. Bredero Shaw is the global leader in pipe coating solutions and employs approximately 4,000 permanent and contract personnel located at offices and facilities in fifteen countries. The division provides specialized coating systems and related services for corrosion protection, insulation and weight coating applications on land and marine pipelines including highly engineered corrosion and insulation systems for deepwater applications. This news release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" and similar terminology are used to identify forward-looking information. This forward-looking information is based on assumptions, estimates and analysis made in light of the company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The risks and uncertainties include, among other things, changes in global economic activity and changes in energy supply and demand which impact on the level of drilling activity and pipeline construction; political, economic and other risks arising from international operations; compliance with environmental, trade and other laws; liability claims; fluctuations in foreign exchange rates and fluctuations in raw material prices, as well as other risks and uncertainties that are more fully described in the company's current Annual Information Form, annual and quarterly reports and in other reports and filings made with securities regulatory authorities and available at www.sedar.com.