Mill to close permanently
Canadian Press – November 5, 2020 / 11:04 am | Story: 315555
Norford Inc. is set to permanently close its Oriented Strandboard Mill in the Central BC community of 100 miles home after ceasing operations in August 2019.
The company said the mill, which produces cladding materials frequently used in new homes, is suffering from a shortage of local wood fiber due to its high cost operation, which has been destroyed by mountain pine beetle and significant wildfires in recent years.
Norbord is announcing the cost of closing the mill at 10 million. About 160 employees were affected last year due to the mill suspension, leaving only a small staff for maintenance.
The closure comes three months after Norbord CEO Peter Wijenbergen announced the end of September 30. Thanks to the high prices for strong new home and construction materials driven by renovation costs in North America and Europe.
The company had a net income of $ 203 million compared to a loss of $ 18 million in the second quarter of 2020 and a loss of $ 17 million in the third quarter of 2019.
Sales rose to $ 725 million in the third quarter. It was $ 435 million in the previous year and $ 421 million in the second quarter.
“We’m optimistic, but we’ve found that our business is cyclical and it’s not yet clear if the worst of the pandemic is behind us,” Viznbergen said in a news release.
“Today we announced the permanent closure of the 100 Mile House Mill in British Columbia, which would reduce Norboard’s North America’s stated capacity, as the continuing shortage of timber supply in the area would make it more economical to reopen the mill.”