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By Kate Bouey / Vernon Matters

POOR MARKET CONDITIONS

Tolko’s Kelowna operations curtailed indefinitely

Sep 12, 2019 | 3:38 PM

KELOWNA — In another blow for the company and its workers, Tolko Industries announced Thursday it was curtailing its Kelowna operations for an indeterminate period.

The Vernon-based business blamed continued high log costs and poor North American market conditions.

“This decision was not easy for us to make,” Troy Connolly, vice president of the solid wood division, said. “We are very disappointed to be in a position where we have to curtail the mill, particularly given the reasons for this extension are beyond our control.

“However, with lumber market prices at sustained low levels and high log costs in B.C., the mill cannot be cost-competitive.”

Connolly said while Tolko would prefer to keep all the firm’s locations in constant operation, the company must manage the business responsibly to ensure future sustainability.

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Connolly said employees were informed of the decision earlier Thursday and managers were available to assist with any questions they may have.

“On days like these, our hearts are heavy as we think of our colleagues and friends at Kelowna,” he said. “It’s hard to know they are suffering today because of reasons that are beyond our control.

“We know our people in Kelowna have done everything in their power to make the mill successful. They have gone above and beyond. Sadly, this has nothing to do with them or their efforts. We simply cannot operate in current conditions.”

Meanwhile, the company has issued an assurance that it will continue to support customers and do its best to minimize any impacts.

Other Tolko operations, including in Armstrong, Lavington and Heffley Creek have been subject to a number of shutdowns this summer, a practice the company called downtime.

Current market conditions were also blamed for the downtime.

As well, Tolko permanently closed its Quesnel mill a few months ago.

In the North Okanagan-Shuswap, Conservative candidate Mel Arnold, the incumbent MP, placed part of the blame for the current state of the lumber industry at the feet of the federal Liberal government.

“The federal government has failed to do anything on the softwood lumber agreement (with the U.S.),” said Arnold. “It should have been part of the Canada-U.S.-Mexico agreement or at least an appendix to that.

“It seems to have been shuffled off to the side. There were great pains taken through the SNC-Lavalin issue to try and save jobs in Quebec and yet we’ve seen no action for jobs here in B.C. or New Brunswick.”