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January 21, 2016

Tolko to curtail small log line; low Chinese demand one of the reasons

Tolko Industries Ltd. is to curtail the 8 in. canter line at its Lakeview Mill in Williams Lake, British Columbia, from March 4, the Williams Lake Tribune reported on Jan. 18.
The decision is a response to increasing log costs, an ongoing degradation in log fiber quality, and reduced demand for the mill's number three and economy lumber due to the continued downturn in the Chinese market, the company said.
Troy Connolly, senior general manager of lumber, said the curtailment may affect up to around 30 people and could result in a change to the mill’s schedule. He said employees had been informed and the company was working with union representatives to mitigate the impact on any potentially affected employees.
Connolly said the curtailment was a result of market conditions and did not reflect staff commitment. He said it was simply not affordable to produce low-grade lumber from low-grade logs, and that the company had to reconfigure to ensure the mill remained competitive and operational.
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