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Rubber and Wood June 06, 2019 03:30:02 PM

Tolko Announces Extension of Downtime at B.C. Interior Sawmills

Paul Ploumis
ScrapMonster Author
Initially, the company had decided to take two weeks downtime at the facilities during the weeks of May 27 and June 3.
Tolko Announces Extension of Downtime at B.C. Interior Sawmills

SEATTLE (Scrap Monster): Vermon-based Tolko Industries, Ltd. announced its decision to extend downtime at two B.C. interior sawmills. The company press release, issued today, stated that the downtime at its lumber mills in Armstrong, in the Okanagan and Soda Creek in the Cariboo will be extended for an additional two weeks period, due to prolonged poor market conditions and uneconomic log costs.

Troy Connolly, Vice President, Solid Wood, Tolko noted that the recent curtailments and closure announcements are an indication of the prevailing hard market and cost conditions, which make lumber companies difficult to operate in the B.C. The proposed hike in stumpage rates effective July this year is expected to make condition even more challenging, he said. Today’s announcement is expected to cut Tolko’s lumber production by additional 16 million board feet, Connolly added.

Connolly urged the affected employees at these operations to bear with the company. Meantime, Pino Pucci, Vice President, Tolko Marketing and Sales announced that the company will continue to support its customers and do its level best to ensure that the impacts caused to them are minimal.

Initially, the company had decided to take two weeks downtime at the facilities during the weeks of May 27 and June 3, citing rising log costs and weak market conditions as the reasons, thereby impacting nearly 328 employees.

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