Tolko's Soda Creek and Armstrong Lumber Mills Announce Reduced Operation

SEATTLE (Scrap Monster): Tolko Industries has decided to cut operations at two of its B.C. lumber mills. The decision is likely to impact Tolko’s mills in Soda Creek, north of Williams Lake and Armstrong, north of Vernon.

According to latest press release issued by the company, both the above operations will move to a four-day work week. The decision is mainly due to high log costs and poor lumber market conditions. This will lead to 20% reduction in production by the mills, it noted. However, the operations of the plywood plant, part of Tolko’s Armstrong sawmill operations, will remain unaffected.

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Troy Connolly, Vice President-Solid Wood, Tolko stated that the company and the regional forest industry is traversing through extremely challenging times. The crisis has led to widespread curtailments across the province, which has already affected approximately 6,000 lumber workers. The company will react immediately to the curtailments if it finds any improvement in market conditions, he added.

Meantime, Pat McGregor, president of the United Steelworkers local 1-423 noted that nearly 200 workers at the Armstrong mill are likely to experience a slowdown. The four-day work week will continue for an indefinite period. Further decision on additional curtailments will be taken in due course, he added.

Last week, Tolko had decided to curtail operations at its Kelowna lumber mill for an indeterminate period.