Norbord Riding The Rising Wave Of OSB Sales

For years, it was known as the ugly duckling, cheaper alternative to plywood. One design maven described it as “like the turkey loaf of building materials.” But oriented strand board – OSB for short – has come into its own over the past 3 1/2 decades as a major player in North American wood-frame housing construction and is increasingly used for industrial and other applications.

Structural OSB panels – made of wood strands that are resin-bonded under high pressure and heat – are mostly used as floor, roofing or wall substrate in home building. They’re also getting play these days on fashionable interior-decoration websites as a “shabby-chic” finishing material.

Capitalizing on OSB’s rise like no other forest-products company is Toronto-based Norbord Inc. Norbord, once a diversified forestry company, has shed assets over the years and focused on OSB. Now boasting annual sales in the $1.5-billion (U.S.) range and a market capitalization of about $2.4-billion (Canadian), it bills itself as the world’s largest producer of OSB.

The $763-million acquisition in 2014 of Vancouver-based Ainsworth Lumber Co. Ltd. gave Norbord – whose operations were concentrated in the U.S. southeast – a strong presence in Western Canada as well as a foothold in the promising Japanese market.

Right now, the steadily growing number of housing starts in the United States is giving Norbord a big boost, and low-key, media-shy chief executive officer Peter Wijnbergen says there are major growth opportunities in Europe and Asia.

From The Globe And Mail: https://www.theglobeandmail.com/report-on-business/forest-products-firm-norbord-riding-the-rising-wave-of-osb-sales/article30985989/

Huber Engineered Woods Strikes Production Deal With Arbec Forest Products

Huber Engineered Woods Strikes Production Deal With Arbec Forest Products

 

Huber Engineered Woods, Charlotte, N.C., will increase production capacity through a contractual manufacturing agreement with Arbec Forest Products. The deal allows Huber to produce its ZIP System sheathing at Arbec’s Quebec, Canada, facility.

“We have seen a strong start to 2016 in our industry and are optimistic for continued growth in the coming years,” said Huber Engineered Woods president Brian Carlson. “We are making arrangements to augment capacity as part of our ongoing commitment to keep pace with the growing needs of our customers for AdvanTech and ZIP System products.”

All specialty products manufactured under the agreement between HEW and Arbec will be stamped and sold under the Huber brand.

Arbec’s mills have an annual production capacity of softwood lumber of 700 million bd. ft. and OSB panels of 620,000 cubic sq. ft.

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In Depth: U.S. Lumber And Structural Panel Trends

With housing starts growing in both single-family and multifamily categories, lumber suppliers are looking to advance their product lines beyond the commodity mindset to help builders resolve more challenges. They also point to the many intangibles provided by suppliers that provide values beyond the initial price when considering options for dimensional lumber, OSB, plywood and structural panels.

“The trend we’re seeing with OSB panels is a move to enhance products in different ways,” says George Hendry, market development manager at Weyerhaeuser. “Builders are struggling with reduced levels of skilled labor, so they’re looking at enhanced panels to help them find ways to make products easier and faster to install. They want attributes that will enhance performance in the field.”

Adds Ray Peters, vice president of marketing at RoyOMartin, “Our new products are aimed at finding ways to decommoditize OSB and excel at all three factors that drive purchase decisions: price, quality and delivery. We want to stand out in that equation.”

Reducing processes and steps for installation has become a priority as builders face new challenges. “One headwind we face today is the shortage of skilled labor in many markets,” says Mary Jo Nyblad, commodity sales and marketing director at Boise Cascade. “Finding, training and retaining qualified employees at all levels of our industry will continue to be a challenge. We as an industry have done a poor job of marketing ourselves. We’re a well-kept secret, especially for young people. It’s a big blind spot.”

A prime focus for adding value has been protecting panels against moisture during the construction process and afterward, helping overcome issues with less efficient crews and eliminating the need for adding housewrap in a separate step. “Products that provide wet-weather protection are popular, as are those that need less sanding and prep time for framers and floor installers,” notes Weyerhaeuser’s Hendry.

From LBM Journal: https://www.lbmjournal.com/in-depth-lumber-and-structural-panels-2016/