Steady growth slots OSB as top structural panel

l\TO PRODUCT has made more I \ sipnificant strides in the structural panJ market than OSB.

Since it was introduced more than 15 years ago, oriented strand board has gained increasing acceptance and usage by builders and buyers, to the point that it is supplanting other structural panel products in key industry categones.

I n"OSB now has become the board of choice in roof, wall and floor applications," said Mark Angelini, president of the Structural Board Association. "Its use in new residential construction has outstripped that of other panel products."

OSB production in North America is expected to exceed plywood this year-dramatic progress considering OSB shipments have risen from scratch (zero market share from the early 1980s).

According to APAThe Engineered Wood Association, North

American OSB output last year reached nearly 19 billion sq. ft., up 12.27o from 1997.

Plywood panel production, however, slipped l.4Vo to 19.7 billion sq. ft., the lowest North American plywood total since 1982. Despite plywood's fall, OSB's increase helped propel total North American structural panel production 4.87o to 38.7 billion sq. ft.

0SB production in

North America is expected to exceed plywood this year,

APA forecasts that North American OSB production will increase from 19.2 billion sq. ft. in 1999 to 20.4 billion sq. ft. in 2002. Plywood production is expected to dip from 18.5 billion sq. ft. in 1999 to 18.3 billion sq. ft. in 2002.

Although economists are predicting that the galloping pace of housing starts in the United States will eventually slow this year, key factors point to OSB increasing its market share for

(Continued on next page)

Company

Louisiana-Pacif ic Portland, Or.

12 plants: Hanceville, Al.;Dawson Creek, B.C.; Montrose, Co.; Abhens, Ga. ; Houlton, Nle. ; Sagola, Mi.; Hayward, Wi.; S:wan River, Manitoba; Roxhro, N.C.; Jasper, Silsbee, Carthage, Tx.

Weyerhaeuser Co.

Federal Way, Wa.

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

Georgia-Pacific Corp.

Atlanta, Ga.

6 dants; Brookneal, Skippers, Va.; Oudley, N.C.; Gr*ada, Ms.; lr{t. Hope, W.V.;Woodland, Me.

Norbord Industries

Toronto, 0ntario

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

Grant Forst Products

Engrle*rart, Ontario

2 danls, Erqtehart, Tirnrnins (rcquird last year from Matertte), Orilarb.

Huber Engineered Woods ir -

Charlotte, N.C.

4 olants: Commerce, Ga.; Easton, Me.; Crystal Hill, Va.; Spring City, Tn.

Le Group Forex, Inc, Val-Dor, Quebec

3 Rhnts: Maniwaki, St-Michel Des Sainb, Chanbofl, Qrebec.

MacMillan BfoedelLtd, Vancous, British Columbia

3 plants: Wawa, Ontario (Norlh Superior Forest Products); Miramichi, New Brunswick (Eagle Forest Products); Hudsan Bay, Saskatchewan ($a*Kor MacMillan).

Potlatch Corp, Sookane. Wa.

3 olants: Bemidji, Cook, Grand Rapids, Mn.

International Paper Co.

Purchase, N.Y.

3 plants: Nacogdoches, Jelterson, Tx.;Cordele, Ga.

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

2 plants: 100 Mile House; Grand Prairie, Alberta.

Tolko Industries

High Prairie, Alberta

1 olant: High Prarie.

Slocan Group

Richmond, British Columbia

1 plant: Fort Nelson, B.C.

Boise Cascade

Boise,ld.

:l Jiarg: Banrick, Ontario.

Willamette Industries

Portland, Or.

1 olant: Simsboro, La.

Mafico Partnership

Monow, La lllg4!: Quitman.

1 olanl: Monow.

Langboard, Inc.

Quitman, Ga.

Tembec Inc.

Grand Mere, Quebec

1 olant: Grand Mere.

Current Past Change

-1998- -1997- '97-'98

OSB Becoming Top Panel

(Continued from previous page) the foreseeable future: o Diminishing timber supplies favor engineered wood panels, particularly OSB. Made from strands of small diameter trees, OSB gets almost twice the yield from trees as other structural panels. (There is no log core left in the OSB production process.) o While built to the same perfbrmance standards, OSB is a less expensive product. o OSB's manufacturing process provides for consistent panels without knots, splits or core voids.

. OSB encourages the more environmentally friendly approach of harvesting small diameter plantation trees-underscoring the viability of a stable resource supply without felling old-growth trees.

. OSB can be custom manufactured to meet specific requirements in thickness, density, panel size, surf,ace texture, strength and rigidity.

Bu*y; Buf;y, Busy

( Conrtwed fro rn p rev io us p?BpJ: and production by nearly 20Vo: "We just got better."

With everyone improving, on.;ly.,,,,a handful of producers mado,rrmoves up tho rankings. Grant Forest Froduct$,'broke the top 5 and increased'itc,:output by two-thirds by acquiring a second plant. Boise Cascade, with its two-year-old plant enjoying its ,,,.'fiist full calendar year of production, gained four notches.

Bigger changes should be reflected on nexfryear's list, due to impending'eonsolidation. Currently, #2 Weyerhaeuser is in the middle of purchasing #8 MacMillan Bloedel, while #1 Louisiaaa'Pacific has warded off #14 Boise,Cescade for control of #7 Le Groupe Forex.

Look for a very different A [q Z of OSB in Y2K.

The accompanying figures are combined estimates of each firm's plani*,,: provided by the companies themtibtes. Ev*ry effon was rnade to ensari sccuracy and tharoxghness.