Norbord Reviews and Updates Their COVID-19 Response

Norbord has recently provided a review and an update on their response to the COVID-19 pandemic. On March 25, in response to the significant market uncertainty from the COVID-19 pandemic, Norbord announced adjustments to its operating configuration to match production with reduced demand for its products. On May 6, as part of its first quarter 2020 results, Norbord announced that it had reduced its operating mill capacity by approximately 35% for the month of April. However, during the balance of the second quarter, market demand improved sufficiently to allow the Company to substantially resume production across its North American and European mills. As a result, in the second quarter of 2020, Norbord’s North American mills produced at approximately 74% of available capacity (excluding the Chambord, Quebec mill), down from 79% in the first quarter of 2020, and its European mills produced at approximately 70% of stated capacity, down from 93% in the first quarter of 2020. The Company’s UK operations were significantly impacted by the government-mandated lockdown of key UK customers during the first half of the second quarter. In the update, Norbord did indicate that given the uncertainty around the depth and duration of the economic impact of COVID-19, the Company will continue to use the flexible operating strategy employed during the early stage of the pandemic to adjust operating schedules as necessary.