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Tolko Closes Quesnel Mill; Cuts Shifts I

Tolko Closes Quesnel Mill; Shifts Cut In Kelowna

May 10, 2019 | 5:11 PM

Tolko Industries has announced the permanent closure of its Quest Wood sawmill in Quesnel and a reduction from two shifts to one at its Kelowna sawmill.

Brad Thorlakson, President and CEO of the Vernon-based company, says it’s a difficult, but necessary decision.

“Unfortunately, we do not have enough economic fibre to keep all of our British Columbia mills running efficiently and productively. We knew that AAC reductions were coming in British Columbia due to the devastation caused by the Mountain Pine Beetle epidemic. The curtailments announced today are sooner than anticipated due to uneconomic log costs, weak lumber markets, and the catastrophic impacts of wildfires.”

Quest Wood has been owned by Tolko since 1981 and Kelowna since 2004, when it was acquired from Riverside Forest Products.

Thorlakson says the curtailments are sooner than anticipated due to log costs, weak lumber markets, and the catastrophic impacts of wildfires.

Tolko’s HR team has been on-site at both mills today, and providing support to employees throughout the transition.

“We will be working with a number of agencies to help people transition to new employment, and we will do everything we can to provide opportunities at other Tolko divisions to minimize the impact on employees and their families.”

The Quest Wood closure process will begin on August 2, 2019, with about 150 employees impacted.

The reduction in shifting at the Kelowna mill is effective on July 12, 2019, with about 90 employees impacted.

“These decisions have been made after a long and detailed analysis and are necessary for the long-term prosperity of Tolko and are consistent with our commitment to sustainability,” says Thorlakson who concluded by saying that all remaining Tolko divisions would continue operating on their regular schedules.

These two decisions will remove 250 million board feet from Tolko’s production in B.C.