Ced-Or OSB Mill Awaiting Green Light to Start Construction

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas. More than seven years in the making, an oriented strand board (osb) mill planned for the Northern region of Quebec, is finally moving ahead. Ced-or Corporation (TSX Venture: COQ) (Montreal, Quebec) will finalize the terms of its financial agreements with lenders sometime this May, for the construction of an $80 million panel board mill near Bearn. The new mill will have an estimated annual production of 210 million square feet (3/8-inch basis). Eighty-five percent (85%) of the mill's output is targeted for the U.S. market, with the balance may be headed overseas.

Construction is slated to begin this summer and will continue for eighteen months. Hundreds of workers, primarily from the Temiscaming region will be employed during the construction phase. The company has secured a contract for the main press line and awarded The S.M. Group International, Inc (Montreal, Quebec) a turn-key contract. NGM International, a division of Neil and Gunter (Fredricton, New Brunswick) will oversee construction activities.

Recent expenditures in OSB expansions and new plants support the theory of OSB as the product of choice to replace plywood. Estimates put demand for OSB by 2008 to be over seven billion square feet, by which current and planned supply would fall short.