Norbord operated all of its European manufacturing sites at full steam in the 2014 financial year. The company invested in expanding and optimizing its particleboard mill in Cowie, Scotland and in two OSB mills in Inverness, Scotland and Genk, Belgium during the year.

These projects boosted its four mills’ capacity by around 170 million sqft (3/8’’ basis) or roughly 150,000 m³ to almost 1.8bn sqft or 1.6m m³ per year. Manufacturing edged 5 % higher to 1.690bn sqft or 1.495m m³. The two OSB mills and the particleboard and MDF mill in Cowie set new production records. All five locations continued operating until scheduled stoppages for maintenance and holidays.

Norbord thus said that its capacity utilization increased to 105 %. Sales were 6 % higher than in 2013 at 1.663bn sqft or 1.472m m³. Norbord improved its European revenues by almost 10 % to US$510m as a result. Higher sales volumes, increased particleboard and MDF prices as well as currency effects associated with the stronger pound Sterling against the US dollar more than made up for lower OSB prices.

Higher wage, raw material and maintenance costs also slimmed earnings. Operating income, which was expressed as adjusted EBITDA, still climbed to US$47m. The EBITDA margin weakened to 9.2 %.

From EUWID: euwid-wood-products.com