West Fraser Purchases Norbord For $3 Billion

West Fraser Purchases Norbord For $3 Billion

West Fraser Timber Co. Ltd. is acquiring all of the outstanding common shares of Norbord, the world’s largest oriented strandboard producer, for $3.1 billion. Following closing, the combined company will operate as West Fraser.

“Norbord’s OSB production is a perfect complement to the West Fraser portfolio, enabling us to deliver a wider range of wood products, and making us a more complete, efficient and valuable partner for our customers,” says Raymond Ferris, President and CEO of West Fraser.

Norbord operates 17 plant locations in the U.S., Europe and Canada, encompassing 15 OSB mills, one MDF plant, two particleboard facilities and a furniture plant.

West Fraser operates 34 sawmills in British Columbia, Alberta and the Southern U.S., as well as three plywood operations and two MDF facilities in Western Canada.

West Fraser will continue to be led by Ferris as CEO and Chris Virostek as CFO. Peter Wijnbergen, President and CEO of Norbord, will be appointed President, Engineered Wood, responsible for the company’s OSB, plywood, particleboard, MDF and veneer operations. Sean McLaren, currently West Fraser’s Vice-President, U.S. Lumber, will be appointed President, Solid Wood, responsible for all of the company’s lumber operations.

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Remodelers Report Material Shortages

Remodelers Report Material Shortages

Though markets have cooled a bit going into the fourth quarter 2020, remodelers reported extensive materials shortages during third quarter 2020, according to a survey conducted by the National Assn. of Homebuilders (NAHB) for its Remodeling Market Index.

The survey asked if remodelers were seeing “some shortage” or “serious shortage” in various categories of building materials and supplies. Looking at product categories, the one cited by most remodelers (77%) was framing lumber, and a third of those reported serious shortages. Plywood and OSB shortages, respectively, were reported by 63% of remodelers with 17% and 18%, respectively, reporting serious shortages. The report covered a broad list of materials, with third quarter shortages also reported for millwork (45%), trusses (43%), hardwood flooring (32%) and ceramic tiles (32%). Officials note that the NAHB’s building material Producer Price Index for softwood lumber has almost doubled the five months prior to October, the largest increase since 1975.

 

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Ligna Changes 2021 Show Dates

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Organizers of the Ligna show—Deutsche Messe and VDMA—announced that the large woodworking machinery event next year is rescheduled from May to September 27 to October 1, 2021. The announcement comes in view of ongoing developments and infections of COVID-19.

“Due to the ongoing pandemic, increasing restrictions and the renewed lockdown, there is great uncertainty in the market,” emphasizes Dr. Andreas Gruchow, Deutsche Messe Managing Board member. “The decision to postpone Ligna was a very difficult one for us, but it is the only consistent measure to give all those involved planning security and the necessary lead time for preparations.”

“We are already looking forward to numerous innovations, particularly in the three focal themes of LIGNA.21: Woodworking Transformation, Prefab Building Processes and Green Material Processing,” adds Christian Pfeiffer, Global Director Ligna & Woodworking Shows at Deutsche Messe.

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The monthly Panel World Industry Newsletter reaches over 3,000 who represent primary panel production operations.

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Egger Starts Up In North Carolina

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Boise Cascade Operation At Elgin Is Up In Air

Boise Cascade Operation At Elgin Is Up In Air 

Boise Cascade has issued a Worker Adjustment and Retraining Notification (WARN) Act notice to its employees at its operations in Elgin, Ore. “We issued the notice in order to ensure that all employees are aware it is possible the mill will have to reduce production levels beginning on or about January 1, 2021,” the company states.

While the demand and pricing for plywood has been favorable during 2020 and the Elgin operation was profitable during the second and third quarters, Boise states that its ongoing ability to use Elgin’s waste and storm water has been modified by the Oregon Dept. of Environmental Quality (ODEQ). The new permit constraints create uncertainty around the future operations at the site, according to Boise, which has significantly reduced its purchases of logs for the Elgin operation considering the uncertainty created by the change in environmental constraints and possible curtailment. “At the current time, we do not expect to have enough logs available to operate throughout the entire winter even if the open concerns with ODEQ are favorably resolved before the end of the year,” the company states.

The Elgin facility currently produces approximately 10% of Boise’s dry veneer production, the majority of which is sold as plywood and represents approximately 16% of Boise’s plywood sales.

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Newsletter

The monthly Panel World Industry Newsletter reaches over 3,000 who represent primary panel production operations.

Subscribe/Renew

Panel World is delivered six times per year to North American and international professionals, who represent primary panel production operations. Subscriptions are FREE to qualified individuals.

Advertise

Complete the online form so we can direct you to the appropriate Sales Representative. Contact us today!