osB 20rr

Noneono, Toronto, Ont., reported OSB sales dropped from $296 million to $241 million in second ouarter 201'1.

"While I am cautious about North American OSB prices in the face of declining U.S. housing numbers, I am confident that Norbord's diversified customer base and limited exposure to new home construction will minimize the impact of this uncertain pricing environment," said c.e.o. Barrie Shineton.

0n the plus side, the company's 0SB mill in Cordele, Ga., received a first-place safety award for 2010 from APA.

WevenxmusER, Federal Way, Wa., continues to operate six of its 0SB mills in the U.S. and Canada. tts 0SB mill in Wawa, Ont., which has been idle since late 2007, is now slated for permanent closure.

"During the first quarter, we continued to make progress in our drive to improve our financial performance despite anemic housing market conditions," said c.e.o. Dan Fulton. "We are leveraging our shength in the export markets to take advantage of increased demand from Asia. Even in these challenging economic times, we have continued our commitment to innovation and quality.'

Forestry director and senior manager.

"While the recent shocks to the global economy, such as the tragic earthquake and tsunami in Japan, will have a negative impact on the demand for plywood and OSB in the short term, the outlook over the longer term is positive," continues Neufeld. "There are at least three large plywood plants in the Miyagi prefecture, and the destroyed plants supply an estimated 25Va of plywood produced in Japan. This will reduce production capacity in Japan in the face of much stronger demand due to the reconstruction process. Together with a strengthening global economy, the reconstruction effort in Japan will boost demand for plywood and OSB, and will present export and investment opportunities."

He also notes there has been a rapid change in plywood and OSB markets over the past decade.

"There has been a shift of plywood production from traditional sources such as South Asia, North America' and Europe to China," says Neufeld. "There has also been a shift of production and consumption of OSB as a cost effective substitute for plywood, from North America to Europe and South America. Over the forecast period China, Eastern European countries, and Russia will emerge