US timber giant Louisiana-Pacific (LP) has confirmed it will be entering the UK I-joist market in a move which will further intensify the already competitive battle for market share in the sector.
LP’s move, being led by experienced former iLevel executive Al Huber, comes as Masonite Beams relaunches its UK operation following a €10m investment and Steico unveils its new national supply network.
The I-joist landscape has now changed dramatically since Finnforest’s takeover of iLevel’s European operations at the start of the year.
Mr Huber told TTJ that LP would bring four products from its SolidStart Engineered Wood Product range into the UK – the LPI-joist, LVL, LSL and its OSB rim board product.
“The company has brought me on board to expand LP’s international market as Weyerhaeuser [which owns iLevel] is retreating from the international market place and LP wants to fill that void,” said Mr Huber.
Paul Worsley has been appointed to represent LP in the UK.
LP expects to have European Technical Approval, BBA approval, technical literature and software in place before the end of the year.
Products will be shipped from late in the third quarter of 2008 at the earliest, starting with LSL and the OSB rim board.
Mr Huber said the timing was good to enter the UK market, despite a housebuilding decline and extra competition. He said customers had more time to analyse products when markets dipped.
“We’re starting off with zero sales, [but] I think we’ll do OK. We’re in it for the long haul and will be trading responsibly. It’s going to be an disciplined entrance into the market.”
Mr Huber said LP’s eight I-joist plants made it a low-cost producer of solid timber flange I-joists, while the recent opening of a US$140m LSL factory in Maine gave LP significant LSL capacity which it “needs to find homes for”. He said LP had big hopes for the LSL product in the UK.