Louisiana-Pacific Buys Out Canfor OSB Mill for $75 Million

Posted by Bill Esler | Posted: 12/06/2012 4:21PM


Louisiana PacificIn addition to housing construction products, LP makes SuperStruct furniture panels, prefinished moulding, and software for housing plans. NASHVILLE - Louisiana-Pacific signed a letter of intent with Canfor to acquire Canfor’s 50% share in the Peace Valley oriented strand board (OSB) joint venture in Fort St. John, BC. LP will become the sole owner, paying $75 million, including working capital.

The two have been running the mill jointly. 

“The Peace Valley mill has been a safe, productive and important part of our OSB strategy for the past seven years,” LP CEO Curt Stevens said. “The mill will continue to play an important role in LP as the housing market rebounds.”

The Peace Valley mill has an annual production capacity of 820 million square feet of OSB, running three shifts with a fourth under consideration for 2013.

In addition to the payment, Canfor may receive additional money over a three year period based on Peace Valley OSB’s annual earnings.

Currently LP provides operational support while Canfor provides labor, fiber resource management and administrative services. LP  sells 100 percent of the product made there 

Separately Canfor announced plans to invest $38.5 million reopening a sawmill in Radium Hot Springs, BC.



About the Author

Bill Esler, Woodworking Network, WMS

Bill Esler

Bill Esler, Editorial Director, Woodworking Network Bill is responsible for overall content at WoodworkingNetwork.com Woodworking Network magazine, and related newsletters. Bill also manages event programs for Woodworking Network Live conferences at the Woodworking Machinery & Supplies Expo in Toronto and Cabinets & Closets Expo. He developing audience engagement programs using custom digital printing, live lead-generating events, custom websites, and custom digital and print content. Read Bill Esler's woodworking blogs. He can be reached at besler@woodworkingnetwork.com or follow him on Google+.

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