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Tolko announces shutdown at Soda Creek, Armstrong Lumber divisions will continue

CANADA (From news reports) -- Tolko Industries has announced it will be extending its holiday shutdown period at its Soda Creek and Armstrong Lumber divisions.

Late last month, the company stated it would conduct a holiday shutdown through the month of January, but the work stoppage will now carry over through the entire month of February.

"We do not make these decisions lightly," says Troy Connolly, vice-president of Solid Wood.

"We have an extremely committed workforce at these operations whose families and communities rely on Tolko. We will continue to support our employees during this challenging time."

The temporary closure will have a direct impact on the company, reducing production by roughly 35 million board feet of stud lumber.

"High log costs and weak lumber markets continue to impact our operating footprint in the province," says Connolly.

"While we strive to ensure consistency and stability for all of our operations, the upward cost pressures in the province combined with the notable decline in lumber demand make the decision necessary."

Vice-president of Tolko marketing and sales, Pino Pucci, added, "Tolko's marketing and sales team will continue to support our customers and do our best to minimize any impacts. Our customers are understanding of current market conditions and aware of our ongoing commitment to serve them."

There is, however, some good news for Tolko employees at the White Valley and Armstrong plywood divisions, as operations are expected to resume sometime this week.

Due to a substation fire on Dec. 28 that also caused an ongoing power outage at Armstrong Plywood and Armstrong Lumber, both locations were forced to halt operations.

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