LP and Norbord exchange mills

Louisiana-Pacific Corporation has agreed to swap OSB mills in Quebec with Norbord Inc.

LP will swap ownership of its Chambord, Quebec, mill for Norbord's Val-d'Or, Quebec, mill. The exchange is expected to be complete in early November 2016.

LP has been working out a strategy to increase its siding capacity, and this transaction, along with its recent acquisition of a former OSB site in Cook, Minnesota, fits into the plan.

"The Canadian mill exchange, coupled with the recent Minnesota acquisition, provides us flexibility and increases our ability to optimize our capacity for sustained business growth," LP CEO Curt Stevens said.

"We have seen tremendous growth in our siding business and anticipate this growth to continue as we look to meet increasing demand," he said. "The aim of these transactions is to provide additional siding capacity by the end of 2018."

For the time being, LP will be conducting a detailed evaluation of the Cook site and Val-d'Or mill to determine the operational feasibility -- including access to wood supply, the work required to convert the sites into fully operational siding mills, as well as conversion costs and annual operating expenses.

LP currently operates 24 mills (14 in the United States, seven in Canada, two in Chile and one in Brazil).