Tolko Industries Ltd.

Tolko Industries Ltd.

February 20, 2007 18:06 ET

Tolko Announces Curtailments at OSB Plants

EDMONTON, ALBERTA--(CCNMatthews - Feb. 20, 2007) - Tolko Industries Ltd. announced today curtailments at two of its oriented strand board (OSB) operations due to the CN Rail strike and weak markets. The temporary shutdowns will take effect on March 5th at High Prairie, Alberta, and on March 21st at Meadow Lake, Saskatchewan.

"Inventory levels of finished products have reached near maximum levels," said Rick Huff, Vice President, Panels. "Without sufficient rail cars for shipping and nowhere to store the product, we have no option but to temporarily stop production."

Poor markets are further compounding the situation, noted Huff. Tolko will review the situation after two weeks and weekly thereafter. "Our employees have shown great effort during these challenging times," said Huff. "We regret the effect this action has on them and their families."

"We are making every effort to ensure our customers are not impacted during this period," added Huff. Alternative transport and reloads will help this effort over the short term.

Tolko's Slave Lake OSB plant began a 6-week curtailment February 8, 2007, due to soft market conditions. The Tolko OSB plants have a combined capacity of 1.6 billion sq. ft. (3/8" basis) and approximately 400 employees. Construction of Tolko's Athabasca Division near Slave Lake, Alberta, continues as scheduled.

Tolko Industries Ltd. (Tolko) is a private, Canadian-owned forest products company based in Vernon, British Columbia. Tolko is a major producer and marketer of lumber, veneer, plywood, oriented strand board, and kraft papers, with manufacturing operations across Western Canada. The Company's Woodlands operations have received third-party certification of their sustainable forest management systems.

Contact Information

  • Tolko Industries Ltd.
    Rick Huff
    Vice President, Panels
    (780) 425-6864
    Tolko Industries Ltd.
    Sheri Greeno
    Communications Advisor
    (250) 549-5341