Tolko Industries Ltd.

Tolko Industries Ltd.

January 20, 2006 23:06 ET

Tolko Industries Ltd.: Permanent Closure Announced at Operations in The Pas, Manitoba

VERNON, BRITISH COLUMBIA--(CCNMatthews - Jan. 20, 2006) - At a Tolko Board of Directors meeting held today, the Board instructed Tolko management to proceed with an orderly process of closure of its logging, sawmill and Kraft papers operations in The Pas, Manitoba.

Mike Harkies, Vice President & General Manager, Lumber and Plywood operations says that despite valiant efforts by many stakeholders it wasn't enough to achieve the level of financial stabilization required. "This is definitely not the outcome we were seeking and we sincerely thank those stakeholders who participated and were prepared to partner with us. Effective Monday morning, January 23, 2006, an orderly termination of logging will commence."

Rick Huff, Vice President & General Manager, OSB & Kraft Papers says the key piece that was missing from the plan was the participation of the members of CEP Local 1403. "It's unfortunate that they didn't believe the seriousness of the financial losses and recognize that without their support the Board wasn't willing to continue the operations."

"We understand the impact of this closure on our employees, contractors, the community and all stakeholders," said Huff. "Sometimes, however, hard decisions need to be made to ensure Tolko remains competitive."

Tolko's sawmill in The Pas directly employs 227 people and the Kraft paper mill directly employs 335 people.

Tolko Industries Ltd. is a private, Canadian-owned forest products company employing approximately 5,000 people across British Columbia, Alberta, Saskatchewan and Manitoba. Its primary business is the marketing and manufacturing of specialty forest products. Tolko has eighteen primary manufacturing operations and four marketing and sales divisions.

Contact Information

  • Tolko Industries Ltd.
    Sheila Catlin
    Manager, Corporate Communications Services
    (250) 549-5326