Norbord announced today that a shortage of wood will cause it to temporarily suspend production at its oriented strand board mill in 100 Mile House. Norbord currently expects the suspension to commence on or about May 14 and to continue for approximately one month.
The significant wildfires that the province of British Columbia experienced in the summer of 2017 seriously damaged logging areas surrounding the 100 Mile House mill, says a statement issued by the company. Further, the severe weather conditions this winter have limited loggers’ ability to access the forests during the months when the mill typically builds its annual log inventory. Combined, these extraordinary circumstances have impacted Norbord’s ability to secure a sufficient wood supply to operate the mill on a continuous basis during this one-month period.
Norbord will continue to supply its customers with production from its other OSB mills and the 100 Mile House mill will continue to receive log deliveries during this period. The company currently estimates that the curtailment will negatively impact its second quarter 2018 financial results by approximately US$5 million.
The closure will affect more than 200 employees.
The 100 Mile House mill has a stated annual production capacity of 440 million square feet (3/8-inch basis).