by Web Editor | 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
by Web Editor | Mar 9, 2015 | News
Norbord Ran All European Mills At Maximum Capacity In 2014
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
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by Web Editor | Feb 11, 2015 | News
From: Panel World Staff
Norbord Inc. and Ainsworth Lumber Co. Ltd. announced that the Supreme Court of British Columbia has granted a final order approving the previously announced merger of Norbord and Ainsworth. Meanwhile Norbord and Ainsworth are providing the U.S. Dept. of Justice with the information it has requested about the transaction. Subject to the satisfaction of all closing conditions, the transaction is expected to close by the end of the first quarter.
The merger would create the largest OSB producer in the world with an OSB production capacity of 7.7 billion SF, according to the companies.
Norbord, based in Toronto, operates seven OSB North American mills, (six of them in the U.S. South) with one mill in Quebec, along with four mills in Europe. Ainsworth, based in Vancouver, BC, operates four Canadian OSB mills—three in Western Canada and one in Ontario. Prior to this transaction, Norbord reported it was third in OSB production capacity behind Louisiana-Pacific and Georgia-Pacific.
The new company will have opportunities to increase capacity through the expansion of Norbord’s OSB production in Western Europe, the restart of Norbord’s two idled mills in North America, and the completion of Ainsworth’s second line in Grand Prairie, Alberta.
The combined company will operate under the Norbord name. Upon completion of the transaction, Norbord shareholders will own 63% and Ainsworth shareholders will own 37% of the combined company.
Read more on this story in the March issue of Panel World…
