Due to housing slump, LP shutting down OSB mill

Wednesday, August 22, 2007 at 1:52pm

Nashville-based Louisiana-Pacific Corp., battered by slumping home construction around the country, today announced that it will shut down operations at its oriented strand board (OSB) mill in Silsbee, Texas, for an indefinite period of time effective Aug. 22.

The mill has an annual production capacity of 350 million square feet and employs 147 people.

In addition, LP announced that it will also curtail OSB production until Oct. 31 at its Hayward, Wis., facility due to current poor market conditions. LP SmartSide® composite wood siding production will continue at Hayward as scheduled.

The Silsbee and Hayward OSB curtailments are in addition to the 160-170 planned third-quarter down days LP had announced on its public earnings call last month.

“The curtailment of our Silsbee operations is a difficult but necessary economic decision,” said LP’s Executive Vice President of OSB, Jeff Wagner. “Despite the hard work and continuous efforts of our employees, the cost of production at Silsbee remains too high to be competitive during this extended downturn in new residential construction.”

“We regret the hardship these curtailments cause employees, vendors and our communities. Unfortunately, current conditions require these types of actions,” Wagner said.

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By: skeptic1 on 12/31/69 at 6:00

They said, "cost of production at Silsbee remains too high to be competitive"... I guess that means they found a cheaper source outside the U.S. So the credit crisis deepens with more lost jobs, leading to more home foreclosures, and a further downturn in the economy.

By: EstebanInez on 12/31/69 at 6:00

That's just a natural cycle... boom and bust. If anything, most economists agree that these cycles are lessened by globalization.

By: EstebanInez on 12/31/69 at 6:00

BTW: OSB is a junky product anyway. They appeared to stake their future on it a few years ago. They're reaping what they sowed then.