NASHVILLE, TENN., October 18 /CNW/ - Louisiana-Pacific Corporation (NYSE:
LPX) on behalf of its Canadian operations, Louisiana-Pacific Canada, Ltd. (LP)
announced today it will permanently shut down operations at its
St-Michel-des-Saints, Quebec, oriented strand board (OSB) mill. Production at
the mill has been curtailed since August, 2006.
Jeff Wagner, executive vice-president of OSB said, "Permanent closure of
the mill was a very difficult economic decision because of the impact on our
employees and the community. We regret having to take this step at St-Michel.
Unfortunately, a number of factors have combined to put the mill in a poor
competitive position for the foreseeable future, making this decision
The closure of this operation and the probable cancellation of the
related forest license will require a non-cash charge against LP's
third-quarter earnings of approximately $47 million.
Consistent with its practice of not selling OSB mills, LP will not sell
the St-Michel-des-Saints OSB mill. However, LP is selling the adjacent
St-Michel-des-Saints sawmill, which has also been curtailed since 2006.
LP has owned the St-Michel-des-Saints OSB mill since 1999, when it was
acquired as part of the purchase of Le Groupe Forex. The mill, which when in
production employs approximately 200 people, was constructed in 1989 and has a
production capacity of 500 million square feet annually.
LP is a premier supplier of building products, delivering innovative,
high-quality commodity and specialty products to its retail, wholesale,
homebuilding and industrial customers. Visit LP's Web site at www.lpcorp.com
for additional information on the company.
For further information:
For further information: Louisiana-Pacific Corporation Media Relations:
Mary Cohn, 615-986-5886 Fax: 615-986-5666