LP Building Solutions to Curtail Oriented Strand Board Production on Soft Demand

Dow Jones

09/02

LP Building Solutions plans to curtail oriented strand board production at its Jasper, Texas facility indefinitely, citing soft demand.

The building products manufacturer said Tuesday it expects to incur $4 million to $6 million of severance and other one-time costs as a result of the decision. The curtailment is set to take effect in October.

The company said the move is in response to challenging market conditions, and follows a review of production requirements across its manufacturing network.

"Taking action now allows us to operate efficiently through the cycle while maintaining the flexibility to respond as market conditions improve," Chief Executive Jason Ringblom said.

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