LP Curtails OSB Production in Texas

LP Building Solutions (LP) says it will "indefinitely curtail" oriented strand board (OSB) production at its Jasper, Texas, facility beginning in October 2026 in response to soft demand.

The Jasper facility has an annual production capacity of approximately 475 million square feet on a 3/8-inch basis. According to a WARN notice filed with the state of Texas, 150 workers will be affected by the closure.

The decision, per LP, follows a review of production requirements across its manufacturing network and reflects current conditions in the OSB market. In evaluating its options, the company says it considered a range of factors, including operating costs, capital requirements, logistics, and long-term asset utilization.

"Current market conditions require us to align OSB production with demand," said LP CEO Jason Ringblom. "While the near-term environment for OSB remains challenging, we are confident in LP's strategy and our ability to create long-term value. Taking action now allows us to operate efficiently through the cycle while maintaining the flexibility to respond as market conditions improve. This decision is not a reflection of the performance or commitment of the Jasper team, whose contributions have helped strengthen LP for many years."

LP adds that it will continue to evaluate market conditions and determine appropriate production levels across its system, including opportunities to restart curtailed capacity when warranted.

The company is providing job search and career transition support and help employees identify and apply for open positions at other LP facilities.