Tolko is reducing production at two of its interior lumber mills.
The company says its cutting production at the Armstrong stud mill and the Soda Creek operation near Williams Lake by 20 percent.
Tolko Vice President, Solid Wood, Troy Connolly says high log costs in B.C. and weak lumber markets are behind the decision.
“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.,” says Connolly in a news release.
Connolly says Tolko will continue to monitor its competitiveness 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.”
He says the decision wasn’t made lightly, but adds it’s a tumultuous time for Tolko and the industry that requires tough decisions to remain sustainable for the long-term.
