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UPGRADE: NEXFOR SPENDS $40M ON BOARD MILL

TORONTO, ON — Nexfor Inc. plans to invest about $40 million to upgrade its wood-products mill in Cowie, Scotland. The investment is one of several moves Nexfor is making to reduce costs at the plant, which makes particleboard and medium-density fibreboard — products used in construction, furniture and flooring industries.

The company said that the new production line will strengthen Nexfor’s position as the largest supplier of particleboard flooring in Britain, while also making it the lowest-cost producer of particleboard. “Particleboard is an intensely competitive business in the UK,” said Barrie Shineton, Nexfor’ senior vice-president and managing director of the company’s British panel business. “With significantly reduced manufacturing costs that will come from the new line, we are solidifying our long-term commitment in this important business.” The project is scheduled to be completed late in 2001.

Nexfor is doing other projects in Europe, including upgrading its oriented-strandboard (OSB) mill in Iverness, Scotland, and building an OSB mill in eastern Europe.