B.C. forestry company Tolko shutters its Kelowna sawmill
Credit to Author: Scott Brown| Date: Fri, 08 Nov 2019 23:01:01 +0000
Tolko Industries will not reopen its Kelowna sawmill.
The Vernon-based forestry company closed the mill in September for an “indeterminate period” due to high log costs and poor market conditions.
On Friday, Tolko announced it will permanently shutter its Kelowna division on Jan. 8.
Tolko president and CEO Brad Thorlakson said the mill’s remaining 127 employees were informed about the decision Friday.
In a press release, the company said Friday’s announcement “will allow employees at the mill to move forward with their lives in certainty.”
The company had already reduced operations at the mill to a single shift in May at the cost of 90 jobs.
Troy Connolly, Tolko’s vice-president of solid wood, said the company’s human resources team was on-site providing employees information and support for accessing career transition services.
“On days like these, our hearts are heavy as we think of our colleagues and friends,” Connolly said. “We know our people in Kelowna have done everything in their power to make the mill successful. They have gone above and beyond. Sadly, this has nothing to do with them or their efforts. Unfortunately, with B.C. log costs, the mill is no longer cost-competitive.”
The mill, which was acquired by Tolko in 2004 as part of the purchase of Riverside Forest Products, has operated in Kelowna since 1932.
Over the summer, Tolko also permanently closed its Quest sawmill in Quesnel with the loss of 150 jobs.