Capital Expenditures for North American Oriented Strand Board Manufacturers in 2005-2007 to Exceed $1.1 Billion

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Wood products producers in the U.S. and Canada are planning to invest over $1.1 billion in oriented strand board (OSB) manufacturing assets over the next three years. Strong housing construction starts, along with a brisk repair and remodeling market, continues to push up demand for OSB, thereby, extending the outlook for more capacity, beyond current production levels. Presently, Industrialinfo.com is tracking 20 capital projects that are in various stages of planning, engineering, and construction that are scheduled to come online by the mid-2007. Project investment values range from $1.9 million up to $187 million.

Click on the image at right to view an analysis chart of OSB projects by state.

In Canada, three grassroot projects and the expansion of an existing OSB mill account for roughly $597 million, or 53.6% of all spending. The newest plant to come online between both countries, will startup in September 2005, near Fort Saint John, British Columbia. The largest of the four projects, is a $187 million project in Ontario that is scheduled to come online in 2007.

The majority of investments into OSB manufacturing in the U.S. will come in the form of plant expansions, rebuilds, and modernizations. Manufacturers at sixteen plants plan to invest $171.9 million to add incremental capacity, while only two new grassroot plants are planned, to date. The combined total investment value of those three plants is $335 million.

Oriented strand board is made from low-grade tree fibers and is a low cost substitute to plywood. OSB is a solid panel product of consistent quality with no laps, gaps or voids and is produced in huge, continuous mats and is often used as sheathing panels for walls, roofs, and floors. In contrast, OSB is a multi-dimensional product, whereas plywood is a one-dimensional product in terms of strength.

Industrialinfo.com is the leading provider of global industrial market research. We specialize in helping companies develop information solutions to maximize their sales and marketing efforts.