TORONTO, June 11, 2019 /CNW/ - Norbord Inc. (TSX and
NYSE: OSB) today announced its intention to indefinitely curtail
production at its oriented strand board (OSB) mill in 100 Mile
House, British Columbia starting
in August 2019.
The Cariboo region in which the Company's 100 Mile House mill is
located has been under mounting wood supply pressure for the past
decade as a result of the mountain pine beetle epidemic. This
challenge has been more recently exacerbated by the significant
wildfires that the province of British
Columbia experienced in the summers of both 2017 and
2018. The resulting wood supply shortage and high wood prices
do not support the economic operation of the mill at this
time.
Norbord will continue to supply its current customers and meet
expected future customer demand with production from its 11 other
operating North American OSB mills, including High Level and Grande Prairie, Alberta.
"This is a difficult decision in response to extraordinary
circumstances," said Peter Wijnbergen, Norbord's President &
CEO. "We have a first-rate team in 100 Mile House and this
curtailment is in no way a reflection on our employees, their
commitment to our customers and suppliers, or the local
community."
The 100 Mile House mill has a stated annual production capacity
of 440 million square feet (3/8-inch basis). Approximately 160
employees will be impacted by this curtailment.
Norbord Profile
Norbord Inc. is a leading global manufacturer of wood-based
panels and the world's largest producer of oriented strand board
(OSB). In addition to OSB, Norbord manufactures particleboard,
medium density fibreboard and related value-added products. Norbord
has assets of approximately US $1.9
billion and employs approximately 2,700 people at 17 plant
locations in the United States,
Canada and Europe. Norbord is a publicly traded company
listed on the Toronto Stock Exchange and New York Stock Exchange
under the symbol "OSB".
This news release contains forward-looking statements, as
defined by applicable securities legislation, including statements
related to our strategy, projects, plans, future financial or
operating performance and other statements that express
management's expectations or estimates of future performance.
Often, but not always, forward-looking statements can be identified
by the use of words such as "set up," "on track," "expect,"
"estimate," "forecast," "target," "outlook," "schedule,"
"represent," "continue," "intend," "should," "would," "could,"
"will," "can," "might," "may," 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: assumptions in
connection with the economic and financial conditions in the US,
Europe, Canada and globally; risks inherent to product
concentration and cyclicality; effects of competition and product
pricing pressures; risks inherent to customer dependence; effects
of variations in the price and availability of manufacturing
inputs, including continued access to fibre resources at
competitive prices; availability of rail services and port
facilities; various events that could disrupt operations, including
natural or catastrophic events and ongoing relations with
employees; impact of changes to, or non-compliance with,
environmental regulations; impact of any product liability claims
in excess of insurance coverage; risks inherent to a capital
intensive industry; impact of future outcomes of tax exposures;
potential future changes in tax laws; effects of currency exposures
and exchange rate fluctuations; future operating costs,
availability of financing, impact of future cross-border trade
rulings or agreements; ability to implement new or upgraded
information technology infrastructure; impact of information
technology service disruptions or failures; and other risks and
factors described from time to time in filings with Canadian
securities regulatory authorities.
Except as required by applicable law, Norbord does not
undertake to update any forward-looking statements, whether written
or oral, that may be made from time to time by, or on behalf of,
the Company, 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 January 31, 2019 Annual Information Form and the
cautionary statement contained in the "Forward-Looking Statements"
section of the 2018 Management's Discussion and Analysis dated
January 31, 2019 and Q1 2019
Management's Discussion and Analysis dated May 1, 2019.
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SOURCE Norbord Inc.