In response to the COVID-19 pandemic, LP Building Solutions (LP) has announced adjustments to their operating schedules, reduction in capital expenditure and steps to enhance an already strong balance sheet. To that end LP has announced it plans to reduce production in April, to more closely match the economic slowdown and demand for OSB products. LP will cut OSB production by at least 100 million square feet (MMSF) in April, or about a third of total capacity, through a combination of curtailments and reduced schedules. This flexible approach is designed to maintain agility for further adjustments (up or down) as demand warrants, and to minimize the impact on employees. LP has also announced its intention to reduce its 2020 capital expenditure plans by 50% to roughly $70 million for the year, or an average of $15 million per quarter from Q2 to Q4. LP is also closely scrutinizing all discretionary spending. As with operating schedules, LP has the agility to flex capital and other spending up or down as demand and market conditions warrant.
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LP Building Solutions Announces COVID-19 Response