NASHVILLE, TN, Oct. 28, 2016 /CNW/ - Louisiana-Pacific Corporation (LP) (NYSE: LPX) today announced that it has reached an agreement with Norbord Inc. (NYSE andTSX: 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 the province.
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.
SOURCE Louisiana-Pacific Corporation
For further information: Mark Morrison (Media Relations), 615.986.5886; Becky Barckley/Mike Kinney (Investor Relations), 615.986.5600