Vernon, B.C. — Today, Tolko Industries announced that, due to continued high log costs and poor North American market conditions, it will curtail its Kelowna operations for an indeterminate period.
“This decision was not easy for us to make,” says Vice President of Solid Wood Troy Connolly. “We are very disappointed to be in a position where we have to curtail the mill, particularly given the reasons for this extension are beyond our control. However, with lumber market prices at sustained low levels and high log costs in B.C., the mill cannot be cost-competitive.”
Connolly says that while Tolko would prefer to keep our locations in constant operation, the company must manage the business responsibly to ensure future sustainability.
Connolly said employees were informed of the decision earlier today and their managers are available to assist them with any questions they may have.
“On days like these, our hearts are heavy as we think of our colleagues and friends at Kelowna,” he says. “It’s hard to know they are suffering today because of reasons that are beyond our control. We know our people in Kelowna have done everything in their power to make the mill successful. They have gone above and beyond. Sadly, this has nothing to do with them or their efforts. We simply cannot operate in current conditions.”
Pino Pucci, Vice President, Tolko Marketing and Sales, assured customers that Tolko’s Marketing and Sales team “will continue to support our customers and do our best to minimize any impacts. Our customers are understanding of current market conditions and aware of our ongoing commitment to serve them.”
For more information, contact:
Janice Lockyer, Communications Advisor
Tolko Industries Ltd.
T: (250) 550-2598 | M: (250) 306-0929