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Georgia-Pacific seeks to buy Clarendon County facility, create 100 jobs

By From local reports
Published: January 11, 2010

Georgia-Pacific has signed an agreement to acquire Grant Forest Products’ oriented strand board (OSB) facility at Englehart, Ontario; the associated facility at Earlton, Ontario; aand its OSB facilities at Clarendon County and Allendale for about $400 million.

At the Clarendon County plant, Georgia-Pacific plans to complete the unfinished construction and begin operations as soon as market conditions allow, which will entail employing more than 100 people there. In addition, Georgia-Pacific plans to make capital investments worth several million dollars to improve facilities and deliver enhanced reliability and efficiencies.

Georgia-Pacific intends to operate the OSB manufacturing facilities that employ more than 300 people in Ontario and at Allendale.

The transaction is expected to close in the first half of 2010, following appropriate Canadian and U.S. regulatory review and court approval.

Grant Forest Products intends to seek approval of the agreement in the near future from the Canadian Court overseeing Grant’s Companies’ Creditors Arrangement Act case and a U.S. Bankruptcy Court.

Georgia-Pacific Dixie Products is located in Darlington.

“These are world-class facilities that fit strategically with our current wood products operations and we are pleased with this opportunity to grow our OSB business in Canada and the U.S.,” Mark Luetters, president of Georgia-Pacific Wood Products, said in a company press release. “We look forward to closing this deal and having these facilities, and the employees who operate them, join the Georgia-Pacific family.”

About Georgia-Pacific
Headquartered at Atlanta, Georgia-Pacific is one of the world’s leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs more than 40,000 people at more than 300 locations in North America, South America and Europe. For more information, visit www.gp.com online.