Weyerhaeuser to Sell U.S. Composite Panel Mills
June 1, 2006 - Weyerhaeuser Company said that it has signed an agreement to sell its six U.S. composite mills in the United States to Flakeboard Company Ltd.
The sale, which is subject to regulatory and board approval, is expected to close in the third quarter.
Terms of the deal were not disclosed.
The locations to be sold 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.
"As part of our review to align our resources, we have determined that the composite panels business is no longer a strategic fit for Weyerhaeuser," said Steven R. Rogel, chairman, president and chief executive officer. "We believe that the skilled employees at these highly competitive and efficient mills will provide greater value to Flakeboard, which is more focused on this line of business products."
Flakeboard is headquartered in Markham, Ontario and currently has manufacturing facilities in Ontario and New Brunswick.
SOURCE: Weyerhaeuser Company