TORONTO, ON (July 6, 2020) – Norbord Inc. (TSX and NYSE: OSB) today announced an update regarding the second quarter 2020 capacity utilization of its North American oriented strand board (OSB) and European panel mills.
On March 25, in response to the significant market uncertainty from the COVID-19 pandemic, Norbord announced adjustments to its operating configuration to match production with reduced demand for its products.
On May 6, as part of its first quarter 2020 results, Norbord announced that it had reduced its operating mill capacity by approximately 35% for the month of April, but that there were early signs of improvement across various end markets for the Company’s products.
During the balance of the second quarter, market demand improved sufficiently to allow the Company to substantially resume production across its North American and European mills. As a result, in the second quarter of 2020, Norbord’s North American mills produced at approximately 74% of available capacity (excluding the Chambord, Quebec mill), down from 79% in the first quarter of 2020, and its European mills produced at approximately 70% of stated capacity, down from 93% in the first quarter of 2020. The Company’s UK operations were significantly impacted by the government-mandated lockdown of key UK customers during the first half of the second quarter.
Given the uncertainty around the depth and duration of the economic impact of COVID-19, the Company will continue to use the flexible operating strategy employed during the early stage of the pandemic to adjust operating schedules as necessary.
Norbord will release its second quarter 2020 results on August 5, 2020 and does not intend to provide further interim operational updates unless there is a significant change in the Company’s operating strategy.
Norbord Inc. is a leading global manufacturer of wood-based panels and the world’s largest producer of oriented strand board. In addition to OSB, Norbord manufactures particleboard, medium density fibreboard and related value-added products. Norbord has assets of approximately $1.9 billion and employs approximately 2,400 people at 17 plant locations in the United States, Canada and Europe. Norbord is a publicly traded company listed on the Toronto Stock Exchange and New York Stock Exchange under the symbol “OSB”.