Highly Anticipated LP Siding Plant Delayed In Minnesota

by | May 12, 2017 | News

Residents and officials eager for a new siding plant to open in northeast Minnesota are going to have to wait a bit longer. Louisiana-Pacific — which last year announced the purchase of a former mill in Cook, Minn., to expand its thriving engineered wood siding business — now says it will first convert a mill the company operates in British Columbia to make siding.

In a conference call with analysts, LP’s chief operating officer Brad Southern said it makes sense to develop the Canadian site first because of its proximity to the company’s West Coast customer base, and because the mill is already staffed and operating.

But that doesn’t mean a northern Minnesota plant is off the table. The Cook location and another site in Quebec “are likely options for future siding expansion,” said Southern. He added the company is “continuing our planning process for both locations with a focus on Cook.”

Still, the earliest the Cook mill would likely open is 2020, Southern told analysts. The company would first need to construct buildings and equip the entire mill. “The advantages of Cook, though, is it is a larger mill,” said Southern. “Cook gives us a lot of upside on volume. It’s a beautiful piece of land, a beautiful site to construct the mill and then expand it.”

State legislators and economic development officials on the Iron Range have had high hopes for the Louisiana-Pacific plant as something that could kickstart the region’s wood products industry.

From MPR News: https://www.mprnews.org/story/2017/05/08/hotly-anticipated-northern-minn-wood-siding-plant-delayed

Louisiana-Pacific Announces Mill Exchange To Increase Siding Capacity

by | Nov 2, 2016 | News

Louisiana-Pacific Corporation (LP) recently announced that it has reached an agreement with Norbord Inc. to exchange OSB mills in Quebec, Canada. LP will swap ownership of its Chambord, Quebec, mill for Norbord’s Val-d’Or, Quebec, mill. The asset exchange is expected to be complete in early November 2016.

This transaction, along with the recent acquisition of a former OSB site in Cook, Minnesota, is part of LP’s strategy to increase siding capacity, an area of the business that has delivered consistent sales growth over the past decade.

“The Canadian mill exchange, coupled with the recent Minnesota acquisition, provides us flexibility and increases our ability to optimize our capacity for sustained business growth,” LP Chief Executive Officer Curt Stevens said.

“We have seen tremendous growth in our siding business and anticipate this growth to continue as we look to meet increasing demand,” he said. “The aim of these transactions is to provide additional siding capacity by the end of 2018.”

LP’s immediate priority will be to conduct a detailed evaluation of the Cook site and Val-d’Or mill. The assessment will determine the operational feasibility, including access to timely and adequate wood supply, the work required to convert the sites into fully operational siding mills, as well as conversion costs and annual operating expenses.

From LP Corp.: https://investors.lpcorp.com/phoenix.zhtml?c=73030&p=irol-newsArticle&ID=2217033