LPX
#I don't have the industrial numbers in front of me, but what we did ---+ what we do track is how much of our OSB is value-added.
And last year, in 2014, it was about 40%.
And we increased that by about 4% to 44% in 2015.
So we did make (multiple speakers) that was largely ---+ it was FlameBlock, it was TechShield radiant barrier and our flooring products.
We are hoping ---+ my objective is to get that over 50%.
But I don't think we are going to do it this year.
It will be multiple steps.
On FlameBlock, it is not tied to random links.
We do a quarterly pricing.
So obviously you have to take random links into consideration, but it's a quarterly pricing, not subject to weekly adjustments.
On TechShield and our flooring products, those are largely an adder, so they are tied to random links.
And what we're trying to do is move some of the higher-end flooring products away from random links but we haven't done that yet.
On the industrial products, they are priced generally on a quarterly basis.
FlameBlock is just in its infancy now.
We probably had a 40% increase last year but on a very small base.
We expect, with the new plant we're putting in place, we are adding about 30 million square feet of capacity, and there's about $20 million at our partners right now.
So when that's fully running, that will be about 50 million square feet.
I think the industrial ---+ I guess it's probably around 100 million to 120 million feet.
In 2015, we put a price increase in place that took effect on January 1.
We have not put a price increase in place for this year yet, and I'm not sure we will because we're trying to recover the ---+ well, get back to the growth rates that we have enjoyed in the past.
So I think that you probably won't see any major changes in the price because the mix will get better, but I don't think we are going to put any price increases in.
What you will see is that we will probably go back with some of the customers, as I mentioned, that we high-graded out and get back into their good graces and start selling.
One of the reasons we can do that is Swan Valley will be the lowest-cost plant in our system, so it does give us a little bit of flexibility to maintain margins while giving a little on the price.
I would be very disappointed.
That's very fair.
I just put pressure on our general manager, by the way.
In OSB, the problem is that all of our customers know that the Canadian exchange rate is down.
So if you look at the primary benchmarks for product from Canada coming into the US, which would be the Western Canadian print and the Eastern Canadian print, they are by far and away the lowest performers across the region.
So, unfortunately, we haven't been able to capture all of that because we are giving some of the pricing ---+ we are giving it back in pricing in the random links reported numbers.
I think currently, between north-central and western Canada, we have a $40 differential.
So that ---+ that's the problem.
If they are selling into those regional pricing environments, they would not be more profitable.
Now, if they can ---+ if they are closer to the north-central market, then they could be.
We won't cut you off today.
I can only talk about LP, <UNK>.
And you saw the amount of downtime that we took.
We did pull inventories down throughout the year.
We just think that if we are more real-time with the market and not have an inventory overhang, that that makes a lot of sense.
So we are running our mills to respond to the demand that we have.
No, that's not the dynamic.
The dynamic is that we want to run Swan full on siding, but we don't have demand yet for 100% of the siding capacity we have, so we will use that swing capability at Hayward to run OSB in the north-central region.
We have other equipment throughout the system.
I don't want to be too specific because our competitors are listening here.
But we have under the fellow who heads up all of our procurement and logistics and forestry, he's got a team put together to look exactly at that, at sites that make logistical sense that make sense from a personnel standpoint, and to look at equipment that we could redeploy most cost-effectively.
So that was my comment about when you think about future capital, we do have to think about where the next mill goes to support the siding growth.
Yes.
Actually, in Chile, we already make siding down there.
And actually the third mill that we want to put in Chile we will put on the same site that we already share, and that smaller mill will likely go to 100% SmartSide with a new mill being OSB.
That is exactly our plan.
We are struggling to figure out how to do that in Brazil with a continuous press, and we haven't figured that one out yet.
Correct.
We still had ---+ <UNK> just told you we had 128 down days in the fourth quarter, so we would like to get rid of those first.
And then the further growth is we still have the Chambord mill that is indefinitely curtailed.
There's no change in status.
Near as we can tell, nobody bid for the wood, so we still have a very good chance of getting that back should we want to start it up.
But with 128 down days in the quarter, I would much rather fill that out.
And as <UNK> said, we've made very good progress at Peace Valley and Clarke County in getting them up to their rated capacities.
Yes, for the OSB piece.
For the industry, I'm guessing we were at 60%.
We weren't much different than the industry.
(multiple speakers) we have a little bit of an export business, so that offset it a little bit.
But we are probably right there with the rest of the industry.
In fact, <UNK> and I just looked at some numbers yesterday.
Our growth in I-Joists was a little bit better than the industry.
Our growth in LVL was a little bit less, and then LSL was above.
But fundamentally we grew where the industry grew.
Thanks <UNK>.
Ashley, I think that's all the time we have for questions, so if you could please provide the replay number.
And I'd like to thank everybody for participating in our call.
And Mike and Becky are here to answer any follow-up questions you may have.
So thank you very much and have a great day.
Thanks.
