The line’s capacity will be transferred to MDF3, a £50m continuous pressline commissioned on the site in 2000. This facility is now producing at more than 120% of its original design capacity according to Karl Morris, managing director of Norbord Europe.
He added: “The capacity of MDF3 will grow a further 10% over the next 12-18 months and this efficient performance means we are now in a position to retire our MDF2 facility, an old technology daylight pressline installed more than 20 years ago.”
Major factors driving the restructuring are a continuing decline in the UK furniture manufacturing industry – a significant outlet for MDF – and huge increases in energy and resin costs over the past two years.
Costs associated with the reconfiguration are not expected to have a significant impact on Norbord’s financial results.
And Dave McElroy, deputy managing director, assured that the effect on customers will be minimal.
“Total MDF output will decline by about 20% in the short term, before growing back to about 90% of present capacity by late next year,” he said, adding that short-term reductions will be mainly to offshore markets.
Mr McElroy said Norbord would work closely with customers and suppliers to minimise impact while the line is phased out during the second quarter.
Mr Morris said the company regretted that some employees were being affected by the decommissioning of MDF2 but added that Norbord remains committed to the Cowie site where it has invested more than £80m since 2000.
- Norbord Inc is to take a combined total of 24 days of scheduled downtime in the second quarter at four of its North American OSB plants for maintenance purposes. Production loss during the period will amount to around 30 million FT2.
