Jun 23, 2004. /Lesprom Network/. Nexfor Inc. announced today its panelboard business, Norbord Inc., will acquire the panelboard assets of Agglo NV at Genk, Belgium. Agglo is a producer of oriented strand board (OSB) and particleboard. The acquisition will make Norbord the second largest producer of OSB in Europe with a 20 per cent market share. It will cost approximately 50 million Euros (US$60 million), and is subject to satisfying certain conditions including regulatory approval. The acquisition is expected to close in the third quarter.Barrie Shineton, President of Norbord said: "Our intention to acquire the Genk facility is consistent with our plan to grow our panel manufacturing presence in Europe. The Belgium plant is an excellent fit with our existing operations in the United Kingdom. It strengthens our market presence on the Continent, and in particular, allows us to respond to the outstanding growth prospects for OSB in Europe." European demand for OSB is growing at an annual rate of 15-20 per cent. The Genk mill is ideally situated to serve key markets in Germany and Benelux. It has two separate production lines: a 230,000 cubic metre (260 mmsf, 3/8") OSB line built in 2001; and a 300,000 cubic metre (340 mmsf, 3/8") particleboard line built in 1991. The mill will be Norbord's 11th OSB facility. It will increase the company's total European manufacturing capacity to 1.8 million cubic metres (2 billion s.f. 3/8") of combined OSB, particleboard and medium density fibreboard (MDF). OSB will make up Norbord's largest European sales segment. With the addition of the Genk operation, Norbord will have close to 6 billion square feet (3/8") or more than 5 million cubic metres of production capacity from 16 mills in Canada, the United States and Europe. Norbord is already the largest panel producer in the United Kingdom and the second largest producer of OSB in the United States. In early July, Norbord is expected to become a publicly traded company listed on the Toronto Stock Exchange under the symbol: NBD.