NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 28, 2016--
Louisiana-Pacific Corporation (LP) (NYSE: LPX) today announced that it
has reached an agreement with Norbord Inc. (NYSE: OSB) (TSX: OSB) 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.
LP operates 24 mills (14 in the United States, seven in Canada, two in
Chile and one in Brazil) and employs about 4,800 people. In addition to
two OSB mills in Quebec, LP is part of an engineered wood products joint
venture with Resolute that operates two engineered wood I-joist mills in
Louisiana-Pacific Corporation is a leading manufacturer of
quality engineered wood building materials including OSB, structural
framing products, and exterior siding for use in residential,
industrial and light commercial construction. From manufacturing
facilities in the U.S., Canada, Chile and Brazil, LP products are sold
to builders and homeowners through building materials distributors and
dealers and retail home centers. Founded in 1973, LP is headquartered in
Nashville, Tennessee and traded on the New York Stock Exchange under
LPX. For more information, visit www.lpcorp.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161028005088/en/
Source: Louisiana-Pacific Corporation