TORONTO, March 18 /CNW/ - Norbord Inc. (TSX:NBD) announced today that it
will permanently close the particleboard line at Genk, Belgium, effective
immediately. This decision follows full consultations with the on-site Works
Council and local unions.
As announced on February 15, 2008, production on the OSB line at Genk is
not affected by this announcement.
The permanent closure is effective immediately and impacts approximately
Norbord does not expect a write-down of particleboard asset values will
be required as a result of the line closure.
"The particleboard line comprises older technology and has always been
considered non-core," said Barrie Shineton, President and CEO. "We continued
to operate the particleboard line because of its positive financial
contribution during recent strong market conditions. The return to more normal
product prices made this difficult decision necessary."
Annual capacity of the particleboard line is 170 MMsf - 3/8" basis.
Norbord Inc. is an international producer of wood-based panels and is a
publicly traded company listed on the TSX under the symbol NBD.
This news release contains forward-looking statements, as defined in
applicable legislation. The words "does not expect," "will be," and other
expressions which are predictions of or indicate future events, trends or
prospects and which do not relate to historical matters identify
forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Norbord to be materially different
from any future results, performance or achievements expressed or implied by
the forward-looking statements.
Although Norbord believes it has a reasonable basis for making these
forward-looking statements, readers are cautioned not to place undue reliance
on such forward-looking information. By its nature, forward-looking
information involves numerous assumptions, inherent risks and uncertainties,
both general and specific, which contribute to the possibility that the
predictions, forecasts and other forward-looking statements will not occur.
Factors that could cause actual results to differ materially from those
contemplated or implied by forward-looking statements include: general
economic conditions; risks inherent with product concentration; effects of
competition and product pricing pressures; risks inherent with customer
dependence; effects of variations in the price and availability of
manufacturing inputs; risks inherent with a capital intensive industry; and
other risks and factors described from time to time in filings with Canadian
securities regulatory authorities.
Norbord does not undertake to update any forward-looking statements,
whether as a result of new information, future events or otherwise, or to
publicly update or revise the above list of factors affecting this
information. See the "Caution Regarding Forward-Looking Information" statement
in the March 1, 2007 Annual Information Form and the cautionary statement
contained in the "Forward-Looking Statements" section of the 2006 Management's
Discussion and Analysis dated January 31, 2007. Norbord Inc.
For further information:
For further information: Anita Veel, Director, Corporate Affairs, (416)