Norbord finalizes European panel acquisition

Oct 04, 2004. /Lesprom Network/. Norbord Inc. announced today it has completed a 50 million Euro (US$60 million) acquisition of an oriented strand board (OSB) and particleboard facility at Genk, Belgium. The acquisition, announced on June 22, will position Norbord as the second largest producer of OSB in Europe with about 20% market share. Norbord is also the second largest producer of OSB in the United States. The Genk plant will increase Norbord's annual European sales by 35%. The operation will be integrated with Norbord's existing European panel business in the United Kingdom. The mill is located about 100 kilometres east of Brussels and is well situated to serve and expand Norbord's panelboard customers in the Benelux countries, Germany and Scandinavia. "The Belgium operation represents a strategic and timely opportunity to expand our presence on the Continent. It will provide Norbord with significant economies of scale and the potential to increase the mill's OSB production output," said Norbord President and Chief Executive Officer Barrie Shineton. Mr. Shineton said the Company intends to invest a further 13 million Euros to improve the site's efficiencies and implement environmental improvements. The mill currently has annual production capacity of 230,000 cubic metres of OSB and 300,000 cubic metres of particleboard. It employs approximately 240 people. Norbord is an international producer of wood panels with 16 mills and approximately 3,000 employees in Canada, the United States and Europe. The Company's European panel business now consists of four manufacturing plants producing OSB, particleboard, medium density fibreboard, and furniture components. Altogether, its European panel business makes up more than 30% of Norbord's total assets.