The asset purchase agreement with Roseburg Forest Products is subject to customary closing conditions, including receipt of regulatory approvals. After approval, the Simsboro plant will accelerate the growth of Kronospan’s wood panel production in North America.

“The acquisition of the Simsboro mill, along with its talented and experienced team of managers and associates, will allow us to bring products to market more efficiently and will improve service to our customers,” said Hans Obermaier, CEO of Kronospan’s North American operations.

Kronospan is committed to modernizing the Simsboro particleboard facility in the post-acquisition period.

“Given Kronospan’s plan to continue modernizing and operating the mill, this is good news for the longevity of the Simsboro facility and our 176 team members who work there,” Roseburg President and CEO Stuart Gray said.

“Simsboro has been a high-performing asset for Roseburg and we believe it will continue to deliver value for its new owners.”

Roseburg recently announced significant investments in two new composites plants located in Dillard, Oregon, which will manufacture medium and high-density fibreboard and MDF trim suitable for exterior applications.