The largest employer in The Pas, Man., is closing its doors, leaving hundreds of people out of work.
Tolko Industries employs 332 people in the northern Manitoba town, which has a population of around 5,500 people. On Monday, the B.C.-based company announced it is shutting down operation in Manitoba on Dec. 2.
“This is not a decision we have entered into lightly,” said president Brad Thorlakson in a media release.
“Over the 19 years we have been in the community, a great deal of work has been done, both internally and externally, to improve the mill’s competitive position. Unfortunately, despite years of continued effort to improve the cost structure and business results of the operations, the business is not financially sustainable. This is a business decision that is in the best long-term interest of the company and our employees.”
The company said employees have been informed. A majority of employees are receiving a 14-week layoff notice.
LISTEN: The Pas’ mayor, Jim Scott talks with 680 CJOB News about the closure
Tolko purchased the Manitoba Kraft Paper and Sawmill Operations in 1997.
Port of Churchill layoffs
The closure notice comes a month after the the Port of Churchill announced the grain shipping season will be shut down.
In the small town of 800 people, the Port of Churchill was the largest employer in town, employing approximately 10 per cent of the population during seasonal operations.
Owner Omnitrax has still not commented on reasons for the layoffs or a decision to stop grain shipments this year.
WATCH: Port of Churchill layoffs are ‘devastating to the community’ says town’s mayor