“This asset exchange will better align our portfolio of northern mills with our business strategy,” said Peter Wijnbergen, Norbord‘s President and CEO.
“The Chambord mill is larger and located in the Saguenay-Lac St. Jean area which is the biggest timber-producing region in Quebec.
While market conditions do not support an immediate restart of Chambord, the asset is in good condition and is located closer to key markets, representing a better competitive opportunity for Norbord.”
The Chambord OSB mill was built in the 1980s and has a stated capacity of 470 million square feet (3/8-inch basis). It was curtailed by LP in 2008.
About Norbord’s assets in Quebec
In addition to the Chambord mill, Norbord’s assets in Quebec include an operating OSB mill in La Sarre and a technology research and development centre in St-Laurent. The La Sarre mill is a key part of Norbord’s ability to serve markets in eastern Canada and New England.
Over the last five years, the Company has invested more than $35 million to improve and ensure the mill’s long-term competitiveness, including significant investments in new technology, equipment and processes.
The asset exchange transaction is expected to close in early November 2016.
Norbord Inc. is a leading global manufacturer of wood-based panels and the world’s largest producer of oriented strand board (OSB).