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

Ligna Changes 2021 Show Dates

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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Newsletter

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

Subscribe/Renew

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Sometimes The Paths Come Full Circle

Sometimes The Paths Come Full Circle

SOMETIMES THE PATHS COME FULL CIRCLE

Article by Rich Donnell, Editor-in-Chief, Panel World November 2020

We know that people’s paths may cross; the same can be said of articles in Panel World. You’ve probably noticed that the cover article for this issue is on the Winston Plywood & Veneer operation in Louisville, Miss. It is somewhat of a sequel article, in that Panel World first visited the plant shortly after it started up; having heard it had gotten the kinks out, so to speak, Panel World recently visited it again, and it appeared to be hitting on all cylinders as plywood prices continued to skyrocket. Nice timing. It has taken a lot of focus and innovation on the part of the operators to bring it up to where it needs to be.

Winston Plywood & Veneer is owned by New Wood Resources LLC, which is owned by Atlas Holdings. They built the new plant at the site of a former GP plant. They were originally going to resurrect the old GP plant, but a tornado in April 2014 wiped out the plant and those plans. So they built a new one with a lot of used machinery that they rebuilt. You might say it’s been “the great fine-tuning” ever since, and now it’s paying off.

But let’s get to where I’m trying to go with this. Atlas Holdings formed New Wood Resources shortly after it sold its Wood Resources company and its two southern pine plywood plants to Boise Cascade in 2013. New Wood Resources was formed not only with the Winston operation, but two Western plywood operations as well—since sold off.

Another company in the Atlas Holdings portfolio (operating partners as Atlas Holdings calls them) is RedBuilt. Redbuilt, based in Boise, Id., is a designer, manufacturer and marketer of engineered wood products—open web trusses, I-joists, LVL, glulam beams, etc. RedBuilt was launched in 2009, when Atlas Holdings and a group that included former Trus Joist executives acquired the commercial division of Trus Joist from Weyerhaeuser, which had acquired Trus Joist in 2000.

Trus Joist was the king of engineered wood products, and so it shouldn’t come as a surprise that the “Red” in the name Redbuilt stands for Harold (Red) Thomas, the co-founder of Trus Joist in 1960 in Boise and who with the other co-founder, Art Troutner, had developed and was marketing open web trusses and other engineered wood products even before then, and would go on to develop others, including laminated veneer lumber. Environmentally speaking, their products addressed a shrinking supply of quality timber, caused mostly by the environmental movement.

On page six of this the November 2020 issue you’ll read of the recent death of Red Thomas, who was the salesman and promoter of the team, while Troutner, an architect, was the inventor.

Thomas lived long enough this year to hear that RedBuilt had become in May the exclusive distributor of another engineered wood product that is coming on strong—cross-laminated timber; in this case produced by CLT manufacturer SmartLam.

And to take the crossing of paths a step further, our friend Kurt Liebich, chairman of RedBuilt and New Wood Resources, began his career with Trus Joist in 1994 and was involved in all of the developments and transactions heretofore mentioned since then.

 

 

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