Tolko Industries Ltd. announced the permanent closure of its Quest Wood sawmill in Quesnel, Canada, and a reduction from two shifts to one at its Kelowna sawmill. All remaining Tolko divisions would continue operating on their regular schedules, as the company says in the press release received by Lesprom Network.
Brad Thorlakson, President and CEO, says: “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.”
The Quest Wood closure process will begin on August 2, 2019. Approximately 150 employees are impacted. The reduction in shifting at the Kelowna mill is effective on July 12, 2019. Approximately 90 employees are impacted by the shifting reduction.
These two decisions will remove 250 million board feet from Tolko’s production in British Columbia.
Tolko is a leading North American manufacturer of a wide range of forest products for customers around the world, including lumber, plywood, veneer, oriented strand board, co-products, biomass power and a growing number of specialty wood products.