Tolko reaches agreement with union on Creekside mill closure

Following an extensive operational review Tolko Industries Ltd. announces the Creekside mill will remain closed.

  • Nov. 16, 2012 11:00 a.m.

 

Following an extensive operational review of mills in the Williams Lake area, Tolko Industries Ltd. announced today, Nov. 16  that it does not foresee a reasonable opportunity to reopen its Creekside mill.

Operations at the Lakeview and Soda Creek mills will not be affected, the release says.

“The decision not to reopen the mill was not an easy one to make,” said Mike Harkies, Vice President of Solid Wood. “When we curtailed operations at the mill indefinitely in 2009, we had expected that lumber markets would rebound within a year or two.

However, US housing starts are still less than half of what they were before the recession and, while demand from China has helped to keep our other mills open and US housing starts are slowly improving, lumber demand has still not recovered to a point that will enable all mills to operate viably.”

“These factors, combined with increasing wood costs and deteriorating quality of timber as a result of the Mountain Pine Beetle epidemic, has led us to conclude that reopening the Creekside mill is not viable,” said Harkies.

Following constructive negotiations, Tolko and the United Steelworkers Local 1-425 have reached a tentative agreement around issues raised by the announcement, including payment of severance to affected employees.

With the Creekside decision finalized, Tolko Industries Ltd. will now turn its focus to making the Lakeview and Soda Creek mills commercially competitive over the long run.

Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia with approximately 3,000 employees. 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.

 

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Berth at bowling provincials right up lakecity youth’s alley

A Williams Lake youth bowler will have a shot at a youth… Continue reading

Falcons swoop in on Hope hoops tourney championship

The Lake City Falcons senior boys basketball team is soaring high after… Continue reading

Services set to return to normal at Cariboo Memorial Hospital after cold weather wreaks havoc

Interior Health said efforts to get water back on at CMH have been successful

Midget Female Timberwolves close out regular season with win, tie

The T-wolves final position in the standings now depends on its opponents results

FOREST INK: Developing a local market for biochar

A good place to start is an article in the 2016 BC Organic Grower Journal by Marjorie Harris

After cashing in on QB gambles, Chiefs and 49ers to clash in Super Bowl

KC beats Tennessee, San Francisco dispatches Green Bay to reach NFL title game

B.C. VIEWS: Few clouds on Horgan’s horizon

Horgan’s biggest challenge in the remainder of his term will be to keep the economy humming along

Victoria family focuses on ‘letting go, enjoying time together’ after dad gets dementia

Walter Strauss has developed an interest in music and now takes line dancing classes

B.C. forest industry grasps for hope amid seven-month strike, shutdowns, changes

Some experts say this could be worse for forestry than the 2008 financial crisis

Northern B.C. RCMP investigating alleged sexual assault in downtown Smithers

One person was transported by ambulance to hospital following RCMP investigation at Sedaz

UBC, Iranian-Canadian community create memorial scholarship in honour of victims

The Jan. 8 crash killed 176 people, including 57 Canadians

Disrespectful that Horgan won’t meet during northern B.C. tour: hereditary chief

Na’moks said he was frustrated Horgan didn’t meet with the chiefs

Most Read