LP Announces Mill Exchange to Increase Siding Capacity

(NASHVILLE, Tenn. Oct. 28, 2016) – Louisiana-Pacific Corporation (LP) (NYSE: LPX) today announced that it has reached an agreement with Norbord Inc. (NYSE: OSB) (TSX: OSB) to exchange OSB mills in Quebec, Canada. LP will swap ownership of its Chambord, Quebec, mill for Norbord's Val-d'Or, Quebec, mill. The asset exchange is expected to be complete in early November 2016.

This transaction, along with the recent acquisition of a former OSB site in Cook, Minnesota, is part of LP's strategy to increase siding capacity, an area of the business that has delivered consistent sales growth over the past decade.

“The Canadian mill exchange, coupled with the recent Minnesota acquisition, provides us flexibility and increases our ability to optimize our capacity for sustained business growth,” LP Chief Executive Officer Curt Stevens said.

“We have seen tremendous growth in our siding business and anticipate this growth to continue as we look to meet increasing demand,” he said. “The aim of these transactions is to provide additional siding capacity by the end of 2018.”

LP's immediate priority will be to conduct a detailed evaluation of the Cook site and Val-d'Or mill. The assessment will determine the operational feasibility, including access to timely and adequate wood supply, the work required to convert the sites into fully operational siding mills, as well as conversion costs and annual operating expenses.

LP operates 24 mills (14 in the United States, seven in Canada, two in Chile and one in Brazil) and employs about 4,800 people. In addition to two OSB mills in Quebec, LP is part of an engineered wood products joint venture with Resolute that operates two engineered wood I-joist mills in the province.

 

About LP Building Solutions - As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood building products that meet the demands of builders worldwide. Its extensive offerings include innovative and dependable building products and accessories, such as LP^® SmartSide^® Trim & Siding, LP Structural Solutions portfolio (LP WeatherLogic^® Air & Water Barrier, LP Legacy^® Premium Sub-Flooring, LP^® TechShield^® Radiant Barrier, LP^® FlameBlock^® Fire-Rated Sheathing and more), oriented strand board (OSB), LP^® TopNotch^® Sub-Flooring, LP^® Outdoor Building Solutions^®, and LP Elements^® Performance Fencing. In addition to product solutions, LP provides industry-leading service and warranties. Since its founding in 1972, LP has been Building a Better World^™ by helping customers construct beautiful, durable homes. Headquartered in Nashville, Tennessee, LP operates 26 plants across the U.S., Canada, Chile and Brazil. For more information, visit LPCorp.com.