Tolko has announced a further two weeks of downtime at its Armstrong (pictured) and Soda Creek (Williams Lake) divisions due to poor market conditions. (Morning Star - file photo)

Downtime at Armstrong’s Tolko division extended two weeks

Poor market conditions result in downtime extension at Armstrong and Soda Creek divisions

Tolko employees at its Armstrong and Soda Creek (Williams Lake) divisions will be off worker longer than hoped.

The company announced Wednesday it is extending downtime at both locations for an additional two weeks due to poor market conditions and uneconomic log costs.

READ ALSO: Tolko Armstrong taking two weeks downtime

“As the recent rash of curtailments and closure announcements indicates, current market and cost conditions are making it difficult to operate in B.C.,” said Tolko vice-president, Solid Wood, Troy Connolly. “And, with significant increases to stumpage rates set to take effect in July of this year, we expect conditions to remain challenging.”

Connolly knows this is a difficult time for employees at these operations; however, he says the company wanted to let people know as soon as possible.

“These decisions are difficult. As a family-owned and operated business, we’re proud of our communities and our employees. While we prefer to remain operational, industry conditions are challenging right now, and we want our people and their families to have time to prepare.”

READ ALSO: Tolko announced Quesnel closure, Kelowna reduction

An additional 16 million board feet (mbf) of capacity will be removed from Tolko’s lumber production as a result of today’s announcement.

Pino Pucci, vice-president, Tolko marketing and sales, assured customers that although this is a tough time for the industry, Tolko’s marketing and sales team “will continue to support our customers and do our best to minimize any impacts as a result of these changes.”

Tolko recently annonced a reduction to one shift at its Kelowna division, and will permanently close its operation in Quesnel. There are no plans at this time to permanently close the Armstrong division.

“We’ve made a number of capital investments there of late to prepare the mill to operate successfully for the long run,” said Tolko communications advisor Janice Lockyer. “These decisions (downtime) are related to market conditions and log costs only. As the recent rash of curtailment announcements indicates, current conditions are impacting the entire industry.”



roger@vernonmorningstar.com

Like us on Facebook and follow us on Twitter.

Just Posted

Home fire displaces Vernon tenants for “at least one night”

UPDATE: Crews were able to contain fire to a single room

Two-vehicle crash at Vernon intersection

Truck and SUV involved at Alexis Park Drive and 43rd Avenue

Support sought for senior dog at Vernon SPCA

Teki came in underweight, had surgery to remove two painful lumps and dental work

Freezing rain, flurries possible for Central and North Okanagan

Risk of freezing rain tonight and Saturday morning in Central, North Okanagan and Connector

More job cuts fall on Tolko employees, not just Vernon

Forest company trims another 44 positions

PHOTOS: NHL honours B.C. grandma’s battle against cancer in special match

Shea Theodore’s grandmother Kay Darlington dropped the puck at a special ‘Hockey Fights Cancer’ game

MITCHELL’S MUSINGS: Hitting delete button on hockey traditions

Midget hockey will be no more, but what’s next?

Province argues in B.C. Supreme Court for smudging in schools, says it relates to curriculum

Hearing concludes in case regarding indigenous cultural practice in Vancouver Island classroom

Mosaic Forest Management announces forestry shutdown

Thousands of forestry workers in Coastal B.C. will be affected by ‘curtailment’

Nothing wrong with being mistaken for a sex trade worker

Twice in my life, I’ve been mistaken for a sex trade worker.… Continue reading

Appeal dismissed for B.C. man who assaulted woman in ‘thoroughly modern’ fight over phone

‘Both were seeking evidence of cheating by the other,’ says B.C. Supreme Court in Nanaimo

Princeton pot plant owners concerned about fake website

We don’t want people thinking that’s our company.

Vandals target Cowork Penticton mural

‘Calliope’ is meant to be a simble for weaving separate parts together to form a community

Motorcycle ride in memory of Penticton man

Motorcycle enthusiast was murdered in Kamloops earlier this year

Most Read