Weyerhaeuser Selling Composite Panels Business
April 21, 2006 - Weyerhaeuser Company yesterday said that it has entered into an agreement in principle to sell its composite panels business to two companies and is entering into final negotiations with these companies on the sale.
Weyerhaeuser is negotiating with Flakeboard Company Ltd. for the sale of its six composite mills in the United States. Those locations include Albany, Ore.; Bennettsville, S.C.; Eugene, Ore.; Malvern, Ark.; and Simsboro, La. The mills, which produce medium density fiberboard (MDF) or particleboard, have the capacity to produce a total of 1.1 billion square feet annually.
In Europe, Weyerhaeuser is negotiating with Coillte for the sale of the Medite MDF facility. The mill, located in Clonmel, Ireland, has an annual capacity of 230 million square feet.
Flakeboard is headquartered in Markham, Ontario and currently has manufacturing facilities in Ontario and New Brunswick. Coillte is a commercial forestry company located in Dublin, Ireland.
Weyerhaeuser will continue to operate its composite panel mills during the negotiation process.
The sales are conditioned on the negotiation of a satisfactory sale agreement and regulatory and Board approval.
SOURCE: Weyerhaeuser Company