LP to Curtail OSB Production in Jasper, TX, Starting in October

On Tuesday, LP Building Solutions announced that it will indefinitely curtail OSB production at its Jasper, Texas, facility beginning in October in response to soft demand. The facility has annual production capacity of approximately 475 million square feet on a 3/8-inch basis.

LP said the decision followed a review of production requirements across its manufacturing network and reflects current OSB market conditions. The company considered operating costs, capital requirements, logistics, and long-term asset utilization.

LP said it will continue evaluating market conditions and production levels across its system, including opportunities to restart curtailed capacity when warranted. The company will provide affected employees with job search and career transition support and help them identify and apply for open positions at other LP facilities.

Commenting on the curtailment, LP CEO Jason Ringblom said:

“Current market conditions require us to align OSB production with demand. While the near-term environment for OSB remains challenging, we are confident in LP’s strategy and our ability to create long-term value. Taking action now allows us to operate efficiently through the cycle while maintaining the flexibility to respond as market conditions improve. This decision is not a reflection of the performance or commitment of the Jasper team, whose contributions have helped strengthen LP for many years.”