Norbord will invest £95 million to modernize and expand its OSB mill in Inverness, Scotland, nearly doubling its capacity to 640,000 cubic metres.
The investment will allow the Canadian company to increase massively the production of panel products to serve the European marketplace.
Over the past four years, demand for Oriented strand board (OSB) in Norbord’s main western European markets has been growing at an average rate of 9%. The modernized facility in Inverness, expected to be completed in the second half of 2017, will feature a direct road, rail and port access.
“Our European business is a source of diversification that is unique to Norbord among OSB producers, and brings stability to our earnings through the business cycle. This is an important strategic investment, focused on the fastest-growing market for OSB, and will make our already strong European business a more meaningful part of our financial results”, said Peter Wijnbergen, Norbord’s President and Chief Executive Officer.
Stuart Goodall, Chief Executive of Confor commented: “This is more great news for forestry and timber in Scotland, following the recent report showing that the sector is worth almost £1 billion. Further investment like this, alongside the Scottish Government’s commitment to plant 100,000 hectares of new woodland in the decade to 2022, gives the whole sector confidence for the future.”