Features Maintenance Sawmilling
Norbord to restart Texan mill

August 8, 2013, Toronto - Norbord's second quarter OSB shipment volumes were flat year-over-year in North America but increased seven per cent quarter-over-quarter due to improved mill operating performance and fewer scheduled annual maintenance shuts. Norbord's OSB mills produced at approximately 75 per cent of installed capacity, unchanged from a year ago and up five per cent versus the prior quarter. Excluding the three mothballed mills, Norbord produced at 105 per cent of stated capacity compared to 95 per cent a year ago and in the prior quarter.

In response to increased demand from Norbord's existing customers, the Company has been working to restart its Jefferson, Texas mill. The mill had been mothballed since the first quarter of 2009 and represents nine per cent of the Company's 4.4 billion square feet (3/8-inch basis) of North American OSB capacity. The mill began initial production in June 2013 and is currently in ramp-up mode. Norbord will continue to monitor market conditions but does not currently expect to restart its curtailed mills in Huguley, Alabama or Val-d'Or, Quebec in 2013.

Norbord's North American OSB cash production costs per unit (excluding mill profit share) increased by eleven per cent year-over-year but decreased by two per cent quarter-over-quarter. Excluding the impact of higher raw material prices and Jefferson, Texas restart costs, unit costs increased by four per cent compared to the prior year and decreased by four per cent versus the prior quarter. Year-over-year, the remaining increase in unit costs was driven primarily by higher supplies and maintenance costs. Quarter-over-quarter, the decrease in unit costs is the result of fewer scheduled annual maintenance shuts and lower labour, supplies and maintenance costs.

In Europe, shipments were six per cent higher than the same quarter last year and two per cent higher than the prior quarter as panel demand improved. Norbord's European panel mills produced at approximately 100 per cent of capacity in both the first and second quarters of 2013, compared to 95 per cent in the same quarter last year.

August 8, 2013  By Press Release