West Fraser Buys OSB Mill
An oriented strandboard plant in Allendale, SC will now have its third ownership since starting up in 2006. West Fraser Timber Co. Ltd. is purchasing the facility from Georgia-Pacific for $280 million. The Allendale facility has been idle since late 2019 when GP shut it down citing market conditions. The plant has an estimated annual production capacity of 760MMSF (3/8 in. basis).
West Fraser intends to invest $70 million to upgrade and optimize the facility in preparation for a restart in nine months. The mill is expected to employ 135. West Fraser states the mill will be one of the lowest cost mills in the company’s OSB portfolio after the optimization is completed and the mill has ramped up to full production, a process that it says typically takes 18-24 months after restart.
In 2005 Ontario-based Grant Forest Products announced it would invest $400 million in building two OSB mills in South Carolina, one in Allendale and the other in Alcolu in Clarendon County. When the U.S. economy went into a recession Grant sold the two OSB plants to Georgia-Pacific in 2010. In 2019 GP idled the Allendale OSB facility along with a sawmill in South Carolina.
Early this year West Fraser entered the OSB arena when it completed the purchase of Norbord Inc., the world’s largest OSB producer, for $3.1 billion. Norbord operated 15 OSB mills in the U.S., Europe and Canada. West Fraser was known primarily as a sawmill company, while operating a handful of non-OSB panel facilities.
GP continues to own five OSB plants in North America.
RELATED ARTICLES
WEST FRASER PURCHASES NORBORD FOR $3 BILLION
Latest News
Georgia-Pacific Names New Building Products Leader
Andy Konieczka, currently President–Structural Panels, will assume the leadership role for the building products business as Executive Vice President–Building Products. Konieczka will report to the company’s President and CEO Christian Fischer. Konieczka has been with Koch companies since 1992. In 2006, he joined Georgia-Pacific, holding strategy, optimization and management roles in wood and fiber, and…
Structurlam Files For Bankruptcy, May Sell To Mercer International
Structurlam Mass Timber Corp. has filed for bankruptcy protection and agreed to sell the company’s new Conway, Ark. CLT plant and its Canadian assets for $60 million, pending court approval. Structurlam entered the asset-purchase agreement with Mercer International Inc., a global forest products company which operates a mass timber facility in Spokane, Wash. However, Mercer’s purchase is subject to a better offer in a court-monitored process…
Panel Producers Make Key Hires
Roseburg has named Lorraine Russ as Director of Structural and Specialty Panels, a newly created role in which she will lead the company’s commercial efforts for softwood and hardwood plywood. Russ comes to Roseburg with a solid depth of leadership experience in strategic sales planning, product innovation and commercialization, and marketing after more than a decade in the building products industry….
Find Us On Social
Newsletter
The monthly Panel World Industry Newsletter reaches over 3,000 who represent primary panel production operations.
Subscribe/Renew
Panel World is delivered six times per year to North American and international professionals, who represent primary panel production operations. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative. Contact us today!