Consolidation in the Cellulose Industry

On August 1, Louisiana-Pacific Corporation merged its GreenStone cellulose insulation division with the U.S. Fiber division of Casella Waste Systems, Inc. to form U.S. GreenFiber, LLC. With the creation of this 50:50 joint venture, both U.S. Fiber and GreenStone have ceased to exist. The new company will use the Cocoon trade name exclusively for insulation produced at their 12 cellulose insulation manufacturing plants. Prior to the merger, Portland, Oregon-based L-P was the number-one cellulose insulation producer, and Rutland, Vermont-based Casella number-two. According to the Cellulose Insulation Manufacturer’s Association, the new company will now control about half of the North American cellulose insulation market. Management of all plants will be based in Charlotte, North Carolina. Casella Waste Systems will primarily supply recycled fiber to the joint venture, and L-P will lend both manufacturing and sales experience.