LP submitted the project for environmental consent and says it should get the go ahead in late summer when construction could begin, according to LP ceo Curt Stevens. Line start up could be in 2016 depending on Chile’s economy.
LP expects to invest between 50 and US$60m in the line which will include used machinery shipped to Chile from discontinued plants in the US. Originally, LP indicated it would install a line larger than its two existing Chilean units with a capacity of perhaps between 300,000 and 350,000m3/year.
However, a housing and economic slowdown after Chile’s change to a Socialist government could delay the plan. Prices remain under pressure due to US panel imports despite the strong US dollar, added LP.
OSB output at LP Chile’s Lautaro mill stopped for a month in July 2014 when a failed flaker was rebuilt. Chile Q4 volumes rose by 16% on higher demand, but Brazil volume was down 27% on a cut in China exports. LP South America 2014 US$150m sales and US$20m net profit were both down.
