The news comes days after the company said it was looking at expanding its European OSB capacity to meet an anticipated 50% increase in OSB consumption during the next decade.
The notice of intent for a planning application relating to a “major investment” at the Morayhill plant was submitted to the Highland Council.
The application follows Norbord completing a detailed feasibility study into upgrading the current 25-year-old facility to include a new continuous press and environmental control technologies. Currently, the Inverness plant operates two daylight presses.
Norbord says the investment would help secure the long-term future of the 130 factory staff, as well as a further 300 jobs supported indirectly through the supply chain.
“We are excited by the potential for what would be a major step forward for our European business,” said Karl Morris, managing director of Norbord Europe.
“The Morayhill site has been part of the Inverness landscape for more than a quarter of a century and has enjoyed very positive relations for both the local community and regulatory authorities.
“Building on that foundation is important and Norbord looks forward to the support of the community, the regulators and Highlands and Islands Enterprise in ultimately achieving final approval for the project.”
The investment proposal is subject to review and approval by Norbord’s board of directors.
Norbord senior vice-president and chief financial officer Robin Lampard told TTJ that every mill in the European OSB industry was running at near capacity and market prospects were improving.
“We expect the trends towards timber frame in the UK to continue,” she said.
Ms Lampard acknowledged the underlying need for housing in the UK gave strong growth potential for OSB use. As well as the core wall sheathing and floor and roof decking applications, she said Norbord anticipated increased use of OSB in engineered floor joists and as window headers in western Europe.
Norbord’s news follows an announcement by Coillte Panel Products’ SmartPly OSB business late last year that the company would be investing in an additional Siempelkamp ContiRoll continuous press at the SmartPly factory in Waterford, Ireland, to dramatically increase production capacity in order to meet future OSB supply requirements of customers.
The SmartPly investment, which also involves new forming and finishing lines, will help SmartPly to provide new value-added and specialty products.
Norbord’s full-year results acknowledged “a strong rebound” in the UK housing sector, boosting its European operations, which comprise three panel mills in the UK and one in Belgium. The company’s European operations recorded an 8% rise in OSB prices in 2013, with its mills operating at 95% capacity.
