Louisina-Pacific will permanently shut down operations at its St. Michel-des-Saints, Quebec, oriented strand board (OSB) mill, the company has announced. Operations at the plant have been halted since August 2006.
LP will take a non-cash charge in its third quarter of $47 million for the closure.
The mill closure was “unavoidable,” said Jeff Wagner, executive vp-OSB. “Unfortunately, a number of factors have combined to put the mill in a poor competitive position for the foreseeable future,” he said.
The mill at St. Michel-des-Saints was acquired in 1999 as part of LP’s purchase of forest products company Le Groupe Forex. The mill has a production capacity of about 500 million square feet annually.
Based in Nashville, Tenn., LP is a supplier of building products for the retail, wholesale and home-building industries.