Tolko Industries Declares Permanent Closure of Quest Wood, Quesnel Sawmill

The company has cited escalated wood costs and weak wood market conditions as the reasons.

SEATTLE (Scrap Monster): Tolko Industries, Ltd., announced its decision to permanently close the Quest Wood sawmill in Quesnel. In addition, the company’s Kelowna sawmill will see shift reduction. The above actions are expected to reduce the company’s B.C. production by around 250 million board feet. The company has cited escalated wood costs and weak wood market conditions as the reasons.

According to company press release, the closure process of Quesnel sawmill is scheduled to begin Friday, August, 2. The decision is expected to impact approximately 150 employees. It must be noted that Tolko has been experiencing increased fibre supply shortages in Quesnel. The reduction of shift at Kelowna mill, from two shifts to single shift, will begin on July 12^th. This is likely to affect nearly 90 mill employees.

Brad Thorlakson, President and CEO, Tolko termed the decision as difficult but necessary under current circumstances. The curtailments are on account of several reasons, mainly high log costs, weak lumber markets and the devastating wildfires. He assured that the company will provide necessary support to impacted employees at both the mills throughout the transition. Tolko will work with several agencies to help them with new employment opportunities. Also, opportunities will be offered at other Tolko divisions. Thorlakson thanked the employees for their contributions over the years.

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