Tolko curtailing mill operations by 20 per cent at Soda Creek, Armstrong
Credit to Author: Scott Brown| Date: Wed, 18 Sep 2019 22:14:30 +0000
B.C. forestry company Tolko Industries is curtailing operations at its Soda Creek and Armstrong stub lumber mills by 20 per cent due to high log costs and weak market conditions.
The company says the mills will move to a four-day work week, but there will be no layoffs.
The Soda Creek mill, which is in Williams Lake, employs 180 workers, while the Armstrong location is part of a larger three-mill operation that employs 400.
“The continued and increasing pressures on log-delivery costs in B.C. have eroded our competitiveness. This, in addition to continued weak markets, means we must take immediate and responsible action to ensure our long-term stability in B.C,” said Tolko vice-president Troy Connolly. “We are moving to a flexible operating footprint starting next week. We will continue to monitor our cost competitiveness regularly to determine if further downtime is required. Our top priority is sustaining the business and the many jobs and economic spinoffs it provides to our communities.”
The announcement comes less than a week after Tolko announced it was closing its Kelowna lumber mill indefinitely due economic conditions. Over the summer, Tolko also permanently closed its Quest sawmill in Quesnel with the loss of 150 jobs.