More Tolko lumber heads to China


More Tolko lumber heads to China

Two contract signings highlight Trade Mission

[VERNON, BC] November 1, 2010—Tolko Industries Ltd. announced the signing of two major contracts this past week which will see a lot more lumber heading across the Pacific Ocean. The deals with China National Building Materials (CNBM) were finalized during the current trade mission trip to China led by Forests, Mines and Lands Minister Pat Bell.

“We are very pleased to take this next step in strengthening our relationship with CNBM,” said Tolko President and CEO Brad Thorlakson. “Our businesses have long term compatible objectives, the pursuit of which benefit our companies, employees, customers, and communities.”

For the first time, studs are taking front stage in overseas growth. The new contract will see Tolko’s Soda Creek Division dedicating lumber to CNBM.

“The secure market agreement is welcome news for the employees of Soda Creek Division and the community of Williams Lake,” said Thorlakson.

The second signing renewed a contract involving all product produced by Tolko’s dimensional lumber mill in Quesnel. Combined, these contracts represent more than 364 million board feet of lumber heading from BC to the China market.

“Congratulations to Tolko on their aggressive overseas marketing plan,” said Forests, Mines and Lands Minister Pat Bell. “It’s clear Tolko’s strategy is paying off for the company and its employees.”

“We continue to see growth of lumber use in the Chinese building sector and a broadening range of wood products sought,” said John Langley, Tolko’s Manager of Export Sales.

“This is in no small part due to the efforts of federal and provincial initiatives, such as Canada Wood Export Program, work on building codes and standards, and demonstration projects,” said Langley. “The government-to-government work led by Minister Bell has been key in supporting opportunities for the BC industry in China and other developing markets.”

Thorlakson notes the positive effect provided through the adoption of the HST system on securing deals such as those announced today. “We are in a very competitive industry that operates on a global platform,” said Thorlakson. “BC’s move to an HST system helps companies like us be able to meet the international pricing levels.”

China National Building Materials is the country’s number one lumber distributor to China’s construction industries.

Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia with over 3,500 employees. Tolko is a major producer and marketer of lumber, veneer, plywood, oriented strand board, and kraft papers, with manufacturing operations across Western Canada. The Company’s Woodlands operations have received third-party certification of their sustainable forest management systems.

Sheri Greeno Tolko Industries Ltd. Communications Advisor