OSBNorth America '98 tr

THE figures may look unimpresI sive, with tamer increases than previous years and even some decreases in production among North America's top OSB manufacturers. But the stability of 1997 is a major contributing factor to the current rejuvenation of the OSB market.

1998 is the year that OSB demand finally started catching back up with production, and prices began to rise accordingly. A commodity primarily used in new home construction. OSB is again in high demand, bolstered by low interest rates, a robust economy and a better-than-expected housing market. For the first time in years, OSB prices have caught up with plywood.

During the early- and mid-1990s, manufacturers kept building nerv plants, but demand couldn't keep up. sending prices plummeting. But there was a silver lining: low prices for OSB over the last two years did entice traditional plywood users to give OSB a try, and many seem to be making the switch permanent.

During the drought, many producers stopped expanding or even cut back production, and fewer new plants are coming on line.

Yet decreased production in a weak market doesn't always make sense for individual plants. "You

Louisiana-Pacif ic Porlland, Or.

12 olants: Hanceville, Al.;Dawson Creek, B.C.; Montrose, Co.; Athens, Ga.; Houlton, Me.; Sagola, Mi.; Hayward, W.; Swan River, Manitoba: Roxboro, N,C,; Jasper, Silsbee, Carthage (started up in April 1998), Tx.

*'#,'Ji'#,:,:il,:''

6 plants: Drayton Valley, Edson, Slave Lake, Alberta; Elkin, N.C.; Grayling, Mi.; Sutton, W.V.

Georgia-Pacific Corp.

Atlanta, Ga,

6 plants: Brookneal, Skippers, Va.; Dudley, N.C.; Grenada, Ms.; Mt. Hope, W.V.; Woodland, Me.

Norbord Industries

Toronto, Ontario

4 plants: La Sarre, Val-d'Or, Quebec; Bemidji, Mn.; Guntown, Ms.

Potlatch Corp. Spokane, Wa.

3 plants: Bemidji, Cook, Grand Rapids;Mn.

MacMillan BloedelLtd, Vancouver, British Columbia

Current

Change siding product. L-P also closed two plants, Corrigan and New Waverly, Tx.

650 Charlotte, N.C.

10 Burr-nrxc Pnooucrs DIcosr SeprENleen 1998

Rank Company

(including number ol 0SB plants)

Le.$p^ungFgrex, Inc.

Val*Dtr, Ou€b€e adtrffiffifrisartedupin

August 1 997), $.-Michel Des Saints, Chambord, Quebec.

International Paper Co.

Purchase, N,Y.

3 plants: Nacogdoches, Jetferson, Tx. (start-up 3-96); Cordele, Ga.

Ainsworth Lumber Co., Ltd. 100 Mile House, B.G.

2 olants: 100 [,ffie House; Grand Prairie, Alberta.

Grant Forest Products Englehart, 0ntario

1 olant: Enolehart.

Malette,Inc.

Timmins,Ontarb

?$antF: Timmins; St.- &org*d+ Ctnmplah, AJ€bec.

Tolko Industries

High Prairie, Alberta ri.,r',, r' , ...'- ::

1 plant: High Prairie.

Current Past -1997- -1996-

Change 96-97

don't try to curtail production, you try to make more," explained Norman Hanson, general manager for MacMillan Bloedel's North Superior facility. "As your production goes up. your costs go down."

The top slots in this year's production ranking remained unchanged from the year previous. The two biggest production gainers were Tolko Industries, which increased output by 337o, and Ainsworth Lumber Co., which upped production by 327o.

The accompanying figures are combined estimates of each firm's plants, provided by the companies themselves. Every effort was made to ensure accuracy and thoroughness.

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