British Columbia wood products company Tolko Industries makes announcement that will affect 125 employees.
First, Tolko Industries announced a curtailment, then the closure of a mill. “The mill has always had an excellent team that produced a highly regarded quality stud for North American and export markets,” they detailed in a statement. “It will always stand as an example of what can be accomplished when ingenuity and know-how come together for a common purpose.”
The company says ongoing low lumber prices and high log costs have forced it to schedule a two-week shutdown affecting all its B.C. operations. The news came after a thorough examination of all contributing factors, including log costs, market conditions, and cumulative policy burden.
The news also comes just weeks before Christmas, and will affect approximately 125 employees.
“At this time, our thoughts are with impacted employees in Kelowna,” said Tolko president and CEO Brad Thorlakson. “This is a difficult decision.”
The privately owned, Vernon-based company says the curtailment will run from Dec. 21 to Jan. 6, while the head office will be closed from Dec. 23 to 27.
A statement on the company website says only essential services will be maintained during the downtime.
Tolko has operations in the Okanagan, near Kamloops and Williams Lake, as well as a terminal in Richmond.
The curtailment comes just a week after the company announced the permanent closure of its Kelowna mill, effective in January.
Troy Connolly, Tolko’s vice-president of solid wood, says the B.C.-wide downtime will reduce output by 21 million board feet at its lumber operations and cut 10 million square feet of panel production at its plywood and veneer plants.
Pino Pucci, vice-president of marketing and sales, said Tolko will do its best to minimize the impact of the shutdown on customers.
“Our customers are understanding of current market conditions and aware of our ongoing commitment to serve them,” he said in a statement.
