Tolko Announces Closure of Alberta Plant

Tuesday, February 12, 2008 03:55 AM

Prince George, B.C. - In yet another sign of the struggles of the forest industry, Tolko has announced the indefinite closure of it's OSB mill in High Prairie Alberta. 119 people will be impacted.

Citing poor bujsiness conditions, Tolko says production has been curtailed since December 3, 2007. Affected employees are being provided with various severance options including the opportunity to apply for vacant positions at other Tolko facilities. Some employees will remain onsite to prepare the mill for an extended shut and asset protection.

“This was a difficult but, unfortunately, necessary decision that reflects the dramatic decline of US housing starts, the strong Canadian dollar, and uncompetitive operating costs,” said Brad Thorlakson, President, Tolko Marketing and Sales Ltd. “We regret the impact on our employees and their families.”

“Restart will be considered when there are meaningful and sustainable improvements in the business conditions that prompted this announcement,” said Thorlakson. “These include improved customer demand in key markets, transportation and energy costs, and competitively priced wood supply. In this circumstance, we will explore further capital investment to allow the High Prairie facility to produce higher value products.”

The company will continue to meet customers’ needs through its remaining strand-based operations.

Tolko operates 10 facilities in B.C. including plants in Quesnel and in Williams Lake.

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