Adjustments to the manufacturing process can affect thickness, panel size, strength, and rigidity. OSB panels have no internal gaps or voids, and can be water-resistant, although they do require additional membranes to achieve impermeability to water and are not recommended for exterior use. The finished product has properties similar to plywood, but is uniform and cheaper.[8] When tested to failure, OSB has a greater load-bearing capacity than milled wood panels.[9] It has replaced plywood in many environments, especially the North American structural panel market.

While OSB does not have a continuous grain like a natural wood, it does have an axis along which its strength is greatest. This can be seen by observing the alignment of the surface wood chips.

All wood-based structural use panels can be cut and installed with the same types of equipment used with solid wood.

Health and safety
The resins used to create OSB have raised questions regarding the potential for OSB to emit volatile organic compounds (VOCs) such as formaldehyde. Urea-formaldehyde is more toxic and should be avoided in home use. Phenol-formaldehyde products are considered to be relatively hazard-free. Some newer types of OSB, so-called “New-generation” OSB panels, use isocyanate resins that do not contain formaldehyde and are considered non-volatile when cured.[10] Industry trade groups assert that formaldehyde emissions from North American OSB are “negligible or nonexistent”.[11]

Some manufacturers treat the wood chips with various borate compounds which are toxic to termites, wood boring beetles, molds, and fungi, but not mammals in applied doses.

Types
Five grades of OSB are defined in EN 300 in terms of their mechanical performance and relative resistance to moisture:[2]

OSB/0 – No added formaldehyde;
OSB/1 – General purpose boards and boards for interior fitments (including furniture) for use in dry conditions;
OSB/2 – Load-bearing boards for use in dry conditions;
OSB/3 – Load-bearing boards for use in humid conditions;
OSB/4 – Heavy-duty load-bearing boards for use in humid conditions