Norbord Inc. Boosts Operations in Cordele

Expansion Represents $135 Million Investment, 75 New Jobs

CORDELE , GA – Today Governor Sonny Perdue and officials of Norbord, Inc., an international wood-based panelboard producer headquartered in Toronto , broke ground on a facility in Cordele , Georgia , scheduled for major expansion.

The $135 million expansion will more than double the size of the mill and create 75 new jobs, making the Norbord facility one of the largest and lowest-cost oriented strand board (OSB) operations in the world.  Construction is scheduled to begin in May, with production beginning in late 2006.

“ Canada is an important business and trading partner for Georgia , and this expansion illustrates the strong ties we have established,” said Governor Sonny Perdue.  “Norbord has successfully taken advantage of our state's strong workforce, logistical infrastructure and pro-business environment, and we encourage the company's continued success.”

“Norbord's presence in Georgia is a real asset to the community and the state, and we are pleased that Georgia has all the resources necessary to help a company like Norbord grow and thrive,” said Department of Economic Development Commissioner Craig Lesser.  “We look forward to providing our services to the company so they can move forward quickly to make their vision a reality.”

This expansion, rather than buying or building a new facility, was the company's most cost-effective way to build OSB capacity and meet rising demand, according to Norbord President and CEO Barrie Shineton.

The Cordele mill is well-positioned in terms of fiber supply and proximity to growth markets and Norbord customers in the Southeast.  In addition to the jobs created by the company, Shineton predicts the expansion will also lead to the creation of about 200 additional jobs in the region, mostly in log harvesting and transportation.

“Expansion of the Cordele mill is consistent with our plan to continue growing our North American OSB business, particularly in the U.S. South where new housing construction is robust,” said Shineton.  “In addition, the low-cost position, experienced workforce and proven technology already in place at Cordele will ensure a fast start up with relatively low risk.”

The Cordele operation, one of six Norbord OSB operations in the Southeast, was built in 1991 and has been rated as one of the company's safest facilities.  The company is the second-largest OSB producer in the United States .