Abitibi-Consolidated and Louisiana-Pacific announce construction of a new engineered wood facility in Saint-Prime, Quebec

Dec 14, 2004. /Lesprom Network/. Abitibi-LP Engineered Wood Inc., the joint venture involving Abitibi-Consolidated Inc. (TSX: A; NYSE: ABY) and Louisiana-Pacific Corporation (LP) (NYSE: LPX), is pleased to announce the construction of its second engineered wood facility to produce I-joists. The new facility, jointly owned by Abitibi-Consolidated and LP, will be an expansion of Abitibi-Consolidated's Saint-Prime mill, in the Saguenay-Lac-St-Jean region of Quebec, and constitutes an investment of approximately CAN$13 million, plus the existing mill. Annual production capacity will be 75 million linear feet, with operations set to begin in the fall of 2005. The project has the potential to create approximately 40 new jobs, in addition to the 125 jobs at the existing Saint-Prime mill. With this new facility, Abitibi-LP Engineered Wood will become the largest manufacturer of solid sawn I-joists in North America. "This new facility is a clear demonstration of Abitibi-Consolidated's commitment to continued investment in the growing market of value-added wood products. This is the second facility in which Abitibi-LP Engineered Wood has invested in the region and we are confident that it will be another winning combination for both our companies," said Yves Laflamme, Vice-President, Sales, Marketing & Value-Added Wood Products, of Abitibi-Consolidated.Operations at the new facility will be overseen by Abitibi-Consolidated. "Market demand for I-joists is expected to continue to grow significantly over the next decade. The complementary manufacturing competencies, product lines, and marketing capabilities of Abitibi-Consolidated and LP will provide quality value-added products to respond to this growth," said Patch Bonkemeyer, LP's General Manager for Engineered Wood Products. The I-joists will be marketed under LP's brand and targeted at distributors, retailers, contractors, architects and engineers. I-joists, a high-value wood product derived from the transformation of small pieces of high-density black spruce, are commonly used in residential building and commercial floor construction. The increase in demand can be attributed to I-joists' unique properties: dimensional stability, availability in a range of widths and lengths, wider nailing surface and improved structural properties. Abitibi-Consolidated is a global leader in newsprint and uncoated groundwood (value-added groundwood) papers as well as a major producer of wood products, generating sales of CAN$5.4 billion in 2003. The Company owns or is a partner in 27 paper mills, 22 sawmills, 4 remanufacturing facilities and 2 engineered wood facilities in Canada, the U.S., the UK, South Korea, China and Thailand. With over 15,000 employees, excluding its PanAsia joint venture, Abitibi-Consolidated does business in approximately 70 countries. Responsible for the forest management of 17.5 million hectares of woodlands, the Company is committed to the sustainability of the natural resources in its care. Abitibi-Consolidated is also the world's largest recycler of newspapers and magazines, serving 16 metropolitan areas in Canada and the United States and 130 local authorities in the United Kingdom, with 14 recycling centers and almost 20,000 Paper Retriever(R) and paper bank containers. Louisiana-Pacific Corporation is a premier supplier of commodity and specialty building products, serving retail, wholesale, homebuilding, and industrial markets. With more than 6,000 employees and 35 manufacturing facilities in the United States, Canada and Chile, LP is committed to providing innovative and high quality products, and the highest level of service for its customers. Its Quebec Division has more than 600 employees at its three OSB mills and one sawmill.