Press Room
Abitibi-Consolidated and LP to Create a Joint Venture to Produce Engineered Wood
Thursday, November 7, 2002
News Release No: 136-11-2
Contact:
David Dugan (Media Relations)
Louisiana-Pacific Corporation
503.821.5285
Bill Hebert (Investor Relations)
Louisiana-Pacific Corporation
503.821.5285
Jacques Dalpé (Media Relations - Canada)
Louisiana-Pacific Canada Ltd.
Marc Osborne (Media Relations)
Abitibi-Consolidated Inc.(514) 394-2340
At least 70 new jobs to produce I-joists
Larouche, Québec, November 7, 2002 – Abitibi-Consolidated Inc. and Louisiana-Pacific Canada Ltd. (LP) today announced the creation of a joint venture that will produce I-joists, used mainly in woodwork in residential and commercial floor construction. The new mill, with annual production capacity of 70 million linear feet, will be located in Larouche, in the Lac Saint-Jean region of Quebec.
Nearly 70 jobs will be created at the beginning, and that number could reach 100 once the plant is operating at full capacity. Abitibi-Consolidated and Louisiana-Pacific will each own 50% of the joint venture and invest a total of CDN$15 million.
The new mill, which will be built adjacent to the former CFL Structure Inc. mill, will begin operations early in 2003. The specialized equipment required for final assembly of the products will come from an LP mill in Oregon.
"I-joists are a good example of a high-value wood product resulting from the transformation of small pieces of high-density black spruce," said Louis-Marie Bouchard, Senior Vice-President, Woodlands and Sawmills, of Abitibi-Consolidated.
Keith Matheney, LP’s Executive Vice President for Engineered Wood Products, stated, "This partnership is an excellent example of how complementary our products and competencies are. The wood to manufacture the flange will come from Abitibi-Consolidated’s sawmills and we will supply the oriented strand board. Together, our combined manufacturing expertise will produce high quality, valued-added joists that will be marketed under LP’s brand, primarily in the North American market."
The I-joists will be promoted to distributors, retailers, contractors, architects and engineers. The I-joist market in 2001 was estimated at nearly one billion linear feet.
Abitibi-Consolidated (TSX: A, NYSE: ABY) has almost 3,000 employees in Saguenay-Lac-Saint-Jean at 10 sawmills and three paper mills and in woodlands operations. The Company is a global leader in newsprint, uncoated groundwood papers and lumber with ownership interests in 27 paper mills in Canada, the U.S., the U.K. and Asia (including its 50% interest in Pan Asia Paper) and in 22 sawmills, 3 remanufacturing facilities and 10 recycling centres. Abitibi-Consolidated employs approximately 16,500 people and supplies products in nearly 100 countries.
Louisiana-Pacific Canada Ltd., a wholly owned subsidiary of Louisiana-Pacific Corporation, is the leading manufacturer of OSB structural panels in Canada. Its Quebec Division has more than 700 employees at 3 OSB mill and 2 sawmills. As a result of the location of its mills and the quality of its operations, LP ranks among the top producers in the industry. With more than 8,000 employees across North America, Louisiana-Pacific Corporation (NYSE: LPX) is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its retail, wholesale, homebuilding and industrial customers.