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 woodworkingnetwork.com

Bill Esler

Bill Esler, Associate Publisher/ Editor in Chief, Woodworking Network Bill is responsible for editing Custom Woodworking Business and coordinating content for Wood Products , CLOSETS , WoodworkingNetwork.com, and related newsletters. Bill’s expertise includes using innovative print manufacturing techniques to grow audience engagement, digital printing, purls, QR codes; and lead-generating webcasts, 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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