COOK—The prospects for a new Louisiana-Pacific siding plant at the former Ainsworth manufacturing site just south of Cook appear to have improved, but the timeline remains unclear following a May 5 presentation to company investors.

The Cook site is one of two manufacturing sites that Louisiana-Pacific acquired last September in hopes of expanding production of the company’s SmartSide siding product, which has shown tremendous growth in the marketplace over the past few years, helping to fuel the company’s profitability. The other manufacturing plant, located in Val d’Or, Quebec, has operated more recently than the Ainsworth plant, which has been closed for nearly a decade, and already has a wood press on site.

But during comments to investors last week, Louisiana-Pacific COO Brad Southern appeared to put the Ainsworth site at the top of the list for future expansion. “Since Val d’Or is not currently operating and the Cook, Minnesota site will basically be a brownfield mill with new buildings and equipment, we are continuing our planning process for both locations with a focus on Cook,” said Southern. “Given the brown field nature of Cook, we have initiated a more detailed engineering and design study which will be followed by the necessary environmental permitting assessments.”

Company officials offered no timeline for when actual construction might begin at the site or when production could get underway. And the company’s announcement that it would convert an existing oriented strandboard plant in Dawson Creek, British Columbia, to a siding plant pointed to a continued waiting game. “We estimate that the Dawson Creek conversion will satisfy about two to three years of demand growth,” said Southern, who noted that the Dawson Creek facility was closer to the West Coast market, which has seen significant growth in demand for the SmartSide product.

Southern said company management will bring its proposal for a Dawson Creek conversion to the Louisiana-Pacific board of directors for approval in July.

Even so, said company officials say “Cook remains a likely option for future siding expansion.”

SmartSide growth

As company officials suggest, the likelihood of a new siding plant in Cook is largely dependent on the continued success of the company’s SmartSide product. And, so far, the company’s overall financial results look impressive, with first quarter sales up $106 million over the same period last year. First quarter profits rose from just $10 million in 2016 to $55 million this year. Rising OSB prices fueled much of that gain in sales and profitability, but the company’s siding sector continues to show major sales and volume growth.

In the first quarter, siding growth was up 16 percent this year over the same period in 2016, and sector earnings before interest, taxes, depreciation and amortization, or EBITDA, jumped 41 percent quarter-on-quarter over the prior year.

Employment prospects

If the Ainsworth site is ultimately selected for siding production expansion, the economic impact would be significant. Louisiana-Pacific spokesperson Mark Morrison said the plant, given its size, would likely employ around 150 workers, which would be similar to the workforce employed by Ainsworth. The facility would also generate significant new employment opportunities for loggers and truckers in the area, further adding to the economic impact. Early estimates put the revenue to loggers and truckers at about $60 million annually.