Nexfor Inc’s panelboard business Norbord Inc is to buy the OSB and particleboard assets of Agglo NV of Genk, Belgium.
The business will become part of Nexfor’s European panel business headquartered in Cowie, Scotland.
The €50m acquisition, which is subject to satisfying conditions including regulatory approval, will make Norbord the second largest producer of OSB in Europe with a 20% market share.
Karl Morris, managing director of Nexfor Ltd in the UK, said: “The Agglo Genk business is an excellent fit with our UK business, fulfilling our long-held objective of adding panelboard manufacturing capacity in Europe.”
He said the Genk operation adds significant scale to Nexfor’s European operations and the company intends to benefit from European demand for OSB which is growing at an annual rate of 15-20%.
The Genk mill, which will be Norbord’s 11th OSB facility, has two separate production lines – a 230,000 m3 OSB line built in 2001 and a 300,000 m3 particleboard line built in 1991.
Norbord’s European manufacturing capacity will be increased to 1.8 million m3 of combined OSB, particleboard and MDF, with OSB representing Norbord’s largest European sales segment.
