Tolko Industries Ltd. announced the permanent closure of its Quest Wood sawmill in Quesnel, BC and a reduction from two shifts to one at its Kelowna, BC sawmill.
“This is a difficult but necessary decision,” says Brad Thorlakson, President and CEO. “Quest Wood has been part of the Tolko family since 1981 and Kelowna since 2004 when we acquired Riverside Forest Products. Unfortunately, we do not have enough economic fiber to keep all of our British Columbia mills running efficiently and productively. We knew that AAC reductions were coming in British Columbia due to the devastation caused by the Mountain Pine Beetle epidemic. The curtailments announced are sooner than anticipated due to uneconomic log costs, weak lumber markets, and the catastrophic impacts of wildfires.”
Thorlakson says the company is working with a number of agencies to help people transition to new employment, and to provide opportunities at other Tolko divisions.
The Quest Wood closure process begins August 2. One-hundred and fifty employees are impacted. The reduction in shifting at the Kelowna mill is effective July 12, affecting 90 employees.
These two decisions will remove 250MMBF from Tolko’s production in BC.