Toronto’s norbord riding the rising wave of osb sales – the globe and mail

But oriented strand board – OSB for short – has come into its own as a major player in North American wood-frame housing construction. Low investment high profit business in kerala It has slowly taken command of the market for structural panels with a current share at about 66 per cent, up from 59 per cent a decade ago and from 43 per cent a decade before that. High profit agriculture business in india It is also increasingly used for industrial and other applications, getting play on fashionable interior-decoration websites as “shabby-chic” finishing material and seeing growing demand from home builders in Europe and Japan.

Not least, the recent recovery in U.S. Businesses with high profit margins housing starts is providing a significant boost to the price of OSB as demand from home builders rises.

Toronto-based Norbord Inc. Low value high profit shares is positioned to profit from the rise in the OSB benchmark price after years of carefully building its presence in the OSB space. Business with less investment and high profit North American OSB prices in the first quarter of 2016 were 17 per cent higher than last year, according to the company.

Structural OSB panels – made of fine wood strands that are resin bonded under high pressure and heat – are mostly used as floor, roofing or wall substrate in home building.

Chris Damas, an analyst and editor of BCMI Report, says the benchmark OSB price is now in the range of $306 (U.S.) per thousand square feet, well above the $229 15-year average.

Once a diversified forestry company, Norbord shed assets over the years to focus on OSB. Profit margin high or low Now boasting annual sales in the $1.5-billion range and a market capitalization of about $2.4-billion (Canadian), it bills itself as the world’s largest producer of OSB.

The $763-million acquisition in 2014 of Vancouver-based Ainsworth Lumber Co. Low capital high profit business ideas Ltd. Retail business with high profit margin gave Norbord – whose operations were concentrated in the U.S. Low investment high profit business ideas in india southeast – a strong presence in Western Canada as well as a foothold in the promising Japanese market.

Right now, the steadily growing number of housing starts in the United States is giving Norbord a lift, and low-key, media-shy chief executive officer Peter Wijnbergen says there are major growth opportunities in Europe and Asia.

Under Norbord veteran Mr. Retail products with high profit margins Wijnbergen, who took over as CEO 2 1/2 years ago, the company is also noted for its single-minded attention to cost cutting and productivity enhancement at its 15 OSB mills.

“When OSB was first brought to market in the early 1980s, it was originally promoted as a cheap substitute for plywood. High profit business with low investment Well, of course, that set you down the wrong path from Day 1 and it has taken quite a while to get away from that image that people associate with it,” Mr. High profit business india Wijnbergen said recently in a rare interview, at Norbord’s R&D centre in an industrial park in the Montreal suburb of St-Laurent.

Among the factors helping upgrade OSB’s popularity are its low cost; innovations that have made it stronger and better suited to a variety of construction and non-construction uses; and the fact it’s made from small, fast-growing trees such as aspen or poplar and that the entire tree is used in the production process, thus reducing its environmental impact. Low budget high profit business in india Even the bark is used to generate energy at the mills.

Plywood manufacturing, in stark contrast, uses only about 50 per cent of the wood material and relies on bigger slow-growth trees, Mr. High profit low cost business Wijnbergen said, who came to Canada as an exchange student from Holland and decided to stay: “We can use smaller, cheaper trees and use all of it and the process is highly automated.” Only about 100 employees are needed at Norbord’s most productive plants, a fraction of the staff required to churn out a similar volume of plywood, he added.

Norbord – formerly known as Nexfor and before that as Noranda Forest Inc. Business with high profit in india – enjoys a big advantage over Canadian lumber producers: OSB is excluded from possible penalties on shipments to the United States, unlike softwood lumber. Low investment high profit business in hyderabad The previous Canada-U.S. High profit items to sell on amazon softwood lumber agreement expired last October and there is a one-year grace period allowing Canada to try to negotiate a new deal to avoid a potentially costly trade war with the United States.

Mr. Best business ideas with high profit in india Wijnbergen anticipates a steady, if not spectacular, recovery in U.S. High profit margin items housing starts, rising to about 1.2 million this year from 1.1 million the previous year. Highest profit margin items on ebay But he’s also buoyed by the fact that Norbord can better manage growth through a fragile recovery because there are more non-construction end uses for its product. Low cost high profit products For example, the company supplies customized OSB to the upholstered furniture industry.

“We kept an eye on plant productivity. High profit items to sell on ebay Now, we’re able to look a little more at innovation. Business with high profit margins in india The focus is becoming a little more on the product development side,” Mr. Ebay products with highest profit margin Wijnbergen said. High profit business ideas philippines Report Typo/Error

All materials are found on open spaces of a network the Internet as freely extended and laid out exclusively in the fact-finding purposes. If you are what lawful legal owner or a product and against its placing on the given site, inform us and we will immediately remove the given material. The administration of a site does not bear responsibility for actions of the visitors breaking copyrights.