Advertisement

Tolko to take downtime at its Kelowna location

Softwood lumber is pictured at Tolko Industries in Heffley Creek, B.C., April, 1, 2018.
Softwood lumber is pictured at Tolko Industries in Heffley Creek, B.C., April, 1, 2018. The Canadian Press / Jonathan Hayward

On Tuesday, Tolko informed its Kelowna employees that it would be taking downtime between August 6 and September 15.

Troy Connoly, vice-president of solid wood at Tolko, said, “The high cost of logs and weak market conditions are still impacting our operating footprint in British Columbia.

“Although we prefer to keep our locations in constant operation, we must manage the business responsibly and ensure that we are sustainable for the future.”

READ MORE: Tolko announces sawmill closure in Quesnel, shift reduction at Kelowna

In May 2019, Russell Taylor, the managing director of Forest Economic Advisors Canada, said, “We are seeing lumber prices at levels that are probably anywhere between 15 and 25 per cent below costs, and at those kind of levels, mills either curtail or in some cases close.”

Now, workers at the Kelowna plant will be off for the better part of six weeks.

Story continues below advertisement

READ MORE: Tolko’s Okanagan cuts a sign of bigger problems for B.C.’s forestry sector

“We do not make these decisions without a lot of consideration,” Connoly said.

“We know we have great people working at this location and this is in no way a reflection on them or their commitment.”

As for Tolko’s customers, Pino Pucci, Tolko’s vice president of marketing and sales, said that his team “will continue to support our customers and do our best to minimize any impacts.”

WATCH: (May 28, 2019) Tolko cuts shift in Kelowna as forestry sector struggles

Tolko cuts shift in Kelowna as forestry sector struggles
Tolko cuts shift in Kelowna as forestry sector struggles