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Management Side
Tolko to Reduce Operating Footprint at Quest Wood

Vernon, British Columbia, Canada 10 September 2015 -- Tolko Industries Ltd. today announced that, due to continued market challenges in China, they will reduce the operating footprint of their Quest Wood lumber mill. The mill, located in Quesnel B.C., employs 224 people and currently produces 200 million board feet of product annually.

Larry Broadfoot, General Manager, Lumber, Plywood Sales & Marketing said the reduction is necessary in current market conditions: "Lumber market prices and volume demand for our #3 and Economy products, particularly in China, have declined to a point where it is now necessary to reduce the operating footprint of the mill in order to remain competitive and produce a more appropriate volume and quality for the market."

Broadfoot noted that while the reduction will have implications for customers, customer service will remain a priority. "At Quest Wood, we will run at current capacity until mid-October when the existing fibre inventory will be consumed," he said. "At that point, we will be delivering a higher quality log which will reduce the volume of lumber available from Quest Wood to the market by 100 million board feet. Despite this reduction, all product commitments to our customers will be met."

Troy Connolly, General Manager BC Lumber, noted that employees have been informed of the decision and have been advised of next steps as the process moves ahead.

"We have a strong team at Quest Wood," said Connolly. "They have a great safety record and solid operational performance. Our employees are a key consideration as we move forward. Currently our HR team is working with union representatives to mitigate the impact on employees."


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