Norbord Europe managing director Karl Morris gave more details about investment plans after the company announced it had submitted a planning notice on February 7 to the Highland Council for a major capacity expansion at Inverness.
The planning notice follows Norbord’s completing a detailed feasibility study into upgrading the current 25-year-old facility to include a new continuous press and environmental control technologies. Currently, the Inverness plant operates two daylight presses.
The notice followed just days after the company revealed in its annual results that an expansion in its European OSB capacity was being looked at to meet an anticipated 50% increase in OSB consumption during the next decade.
But while excited about the potential for expansion at Inverness, Mr Morris said plans would have to go through the planning process and ultimately Norbord’s board would make the final decision on whether to invest.
Norbord had already said its investment would be at Inverness or Genk, not both at this time. And Genk already has a continuous press line.
Mr Morris said a "significant opportunity" existed at Inverness to invest.
"The notice that was submitted to planning should be seen as a positive for Inverness," he said.
Mr Morris said detailed investment discussions, including with the local planning authority, had been going on for more than a year. And initial discussions have been held with continuous press manufacturers Dieffenbacher and Siempelkamp.
"We have had to do more preparation at Inverness than Genk because the scale of change at Inverness is bigger," he said.
Mr Morris would not be drawn on the scale of capacity increase being examined, other than it related to a "large increase".
"A continuous press also gives us great product size flexibility," he said.
Norbord will look at producing value-added OSB products but emphasised that commodity products would continue to be the mainstay of production.
Investment at Inverness, Mr Morris added, would secure the long-term future of 130 factory staff and 300 jobs supported indirectly through the supply chain, as well as potentially substantial extra jobs in associated downstream operations, such as transport.
"The Morayhill site has been part of the Inverness landscape for more than a quarter of a century and has enjoyed very positive relations for both the local community and regulatory authorities.
"Building on that foundation is important and Norbord looks forward to the support of the community, the regulators and Highlands and Islands Enterprise in ultimately achieving final approval for the project."
