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Rubber and Wood September 26, 2016 11:30:26 AM

Tolko's Merritt, B.C sawmill to close permanently by mid-December this year

Carolina Curiel
ScrapMonster Author
The Vernon-based Tolko Industries Ltd. has announced its decision to permanently close its Nicole Valley, Merritt, B.C sawmill operations by mid-December this year.

Tolko's Merritt, B.C sawmill to close permanently by mid-December this year

VANCOUVER (Scrap Monster): The Vernon-based Tolko Industries Ltd. has announced its decision to permanently close its Nicole Valley, Merritt, B.C sawmill operations by mid-December this year. According to company officials, the decision is purely based on fibre supply and not driven by market conditions. The closure of the mill would lead to loss of over 200 jobs. The company press release stated that Tolko will be holding on to the Merritt property. Also, its operations in three other lumber mills in Southern B.C. and two plywood plants would be unaffected by the Merritt closure.

Brad Thorlakson, President and CEO noted that the company arrived at the decision to close the operations, after considering all possibilities. He added that the decision was never an easy one. The company had conducted a review of the wood supply for its Southern Interior operations, following a recent reduction in Annual Allowable Cut. The review revealed that timber supply was not adequate to meet the requirement of all its mills in the region. Consequently, the company has decided to shut operations at the Nicole Valley facility effective December 16th. The closure will remove 250 million board feet of capacity from the lumber market, Thorlakson added.

The mill employees have already been informed of the decision. The notice issued to the employees states that full details of the closure will be made available by first week of next month. Meantime, the company announced that it is currently working with a transition package. The senior crew will be offered pensions, whereas the younger workers will be offered positions at Tolko mills in other locations including Armstrong, Vernon, Quesnel, Williams Lake, Kelowna, Kamloops and Lumby. The company will provide a list of current vacancies to employees.

Meantime, Marty Gibbons, president of United Steelworkers Local 1417 termed the decision as unfortunate and greatly disappointing. He called it a dark day for Merritt as tolko Industries was one of the two major employers in the town. Gibbons called on the provincial government to assist the workers re-training and career counseling program.

Merritt Mayor Neil Menard stated that the issue would be discussed with cabinet ministers next week during the Union of B.C. Municipalities convention to be held in Victoria. He added that the closure is likely to affect loggers and other related businesses in town. Forest Minister Steve Thomson announced that the province will send a transition team to Merritt to extend support services to affected workers.

Earlier in April this year, Dwayne Thiessen, Tolko’s sawmill superintendent for Merritt had stated that the decision to lower the allowable annual cut (AAC) from 2.4 million cubic metres to 1.5 million cubic metres is unlikely to result in further reduction in manpower at the mill. However, he had stated that the full impact of the decision is yet to be determined. In November 2015, the company had cut 29 full time positions and had curtailed its small log line in response to the expected reductions to annual allowable cut.

About Tolko Industries Ltd.

Tolko Industries Ltd. is a privately owned Canadian forest products company based in Vernon, British Columbia. It manufactures and markets specialty forest products to world markets. Tolko's products include lumber, plywood, veneer, oriented strand board, and kraft papers. Tolko's Woodlands departments hold third-party certification on the forestlands they sustainably manage in British Columbia, Alberta, Saskatchewan, and Manitoba.

 

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