Weyerhaeuser is selling its OSB plant in Miramichi, NB.
Weyerhaeuser is selling its OSB plant in Miramichi, NB.
According to a recent report by Forestweb, the mill, which has a capacity of 430 million ft2, has been closed since February. A statement issued on May 4 related to the companys first quarter financial performance confirmed the first quarter of 2007 included a pre-tax item of $56 million for impairment charges associated with the intended sales of the Canadian distribution business and Miramichi, OSB mill.
Forestweb further reported from an SEC filing dated May 10 that read, Management has continued to evaluate its strategic options for the [Miramichi OSB] facility and on April 30, 2007, the company announced that the facility would not be part of its long-term operations.
The report additionally confirmed that due to a struggling OSB market situation, management decided on the requirement of a $26 million impairment charge.
While the impairment charge will not result in future cash expenditures, the timing of a potential sale or closure of the facility may result in additional costs related to severance, maintenance and other activities, the report said.
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