West Fraser Purchases Norbord For $3 Billion

by | Dec 10, 2020 | News

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.

RELATED ARTICLES

CHAMBORD IS THE COMEBACK KID

 

Latest News

Webster Industries Purchases Renold

Webster Industries Purchases RenoldMPE Partners along with its portfolio company, Webster Industries, announced the closing of its acquisition of...

Find Us On Social

Newsletter

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

Subscribe Now
Subscribe/Renew

Panel World is delivered six times per year to North American and international professionals, who represent primary panel production operations. Subscriptions are FREE to qualified individuals.

Complete the form
Advertise

Complete the online form so we can direct you to the appropriate Sales Representative. Contact us today!

Contact Us

Norbord Posts Record Year In 2017

by | Feb 7, 2018 | News

Panel producer Norbord has posted record earnings in 2017 for its worldwide business. The company also achieved record production at nine of its 15 mills, while the Inverness OSB expansion project was also completed.

Peter Wijnbergen, Norbord’s president and CEO, described 2017 as an outstanding year, with record adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of US$672m. “US housing starts continued to improve, led by stronger growth in the single-family segment, driving increased North American OSB demand and prices,” he said. “Our European business had another solid year due to record sales volumes and improved prices for all our panel products across our key markets.”

He highlighted “great momentum” moving into 2018, with demand in all its core markets remaining strong.

“Meanwhile, our European business is poised for improved earnings next year as OSB substitution for plywood drives accelerated demand growth in our core UK and German markets.”

In Europe, shipments increased 5% over the prior year, with its mills running at 99% of capacity in 2017. In local currency terms, full-year average panel prices improved 11% from 2016.

From Timber Trades Journal: https://www.ttjonline.com/news/strong-panels-markets-boost-norbord-earnings-6046604/

Norbord Riding The Rising Wave Of OSB Sales

by | Jul 20, 2016 | News

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/

Timber License Canceled For Curtailed Norbord OSB Mill

by | Jan 20, 2016 | News

Norbord Inc. recently announced that the Quebec Minister of Forests, Wildlife and Parks has terminated the wood license associated with its curtailed Val-d’Or, Quebec OSB mill. Production at the Val-d’Or mill was indefinitely suspended in 2012 following persistently weak North American housing market conditions and lower demand for OSB. This development is not expected to have any impact on the company’s financial results.

“This is disappointing news, but in the bigger picture, we firmly believe that our Val-d’Or mill is the best alternative for the aspen pulpwood in that region,” said Peter Wijnbergen, Norbord’s President and CEO. “Unfortunately, market conditions do not yet justify a restart at Val-d’Or, but we are exploring options for the mill and are committed to a restart once market conditions are supportive. The Ministry has confirmed we can reapply for a wood license when we are ready to restart the mill.”

Norbord is the world’s largest OSB producer and continues to operate in the Abitibi region at its La Sarre, Quebec OSB mill. Since 2012, the company has invested and committed capital in excess of US$35 million to optimize that mill’s capacity and ensure its long-term competitiveness.

From Canadian Newswire: https://www.newswire.ca/news-releases/norbord-provides-update-on-val-dor-quebec-osb-mill-565685951.html