February 13, 2009—Tolko Industries Ltd. announced temporary curtailments at seven of its lumber operations today due to continued poor product markets. Curtailments at the Armstrong, Lavington, and High Level are scheduled to be for two weeks, while the curtailments at the Creekside, Lakeview Lumber, Quest Wood, and Soda Creek operations will remain in effect until the market situation allows us to resume production. All of these curtailments will begin February 9, 2009.
“Market conditions for our softwood lumber products continue to be the worst Tolko has seen in its 52-year history,” said Mike Harkies, Tolko Vice President & General Manager, Solid Wood & Kraft Papers. “This decision is difficult and unfortunate but we must take steps to match our production level to market demand.”
The two-week curtailments will reduce Tolko’s lumber production by 68 million board feet. The further curtailment of the four Cariboo operations will reduce Tolko’s lumber production 18.5 million board feet for every week of additional downtime.
Related woodlands activities are being adjusted accordingly.
The curtailments affect approximately 1300 employees. “This announcement does not reflect the performance of our employees. We appreciate their efforts and understanding while we work to manage our business through this difficult period,” said Harkies. “We will also work hard to ensure that we continue to meet our loyal customers’ product needs.
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