The Tolko mill in Armstrong
Image Credit: Submitted/Tolko.com
December 29, 2022 - 6:00 PM
Mill workers at the Tolko Industries plant in Armstrong are getting an extended Christmas break as they'll now be off work at least until the end of January.
In fact, there’s no telling how long the mill will be shut or whether the workers will return at all.
“We can’t say for certain how conditions will take shape over the coming months, which is why we will be evaluating the downtime at the end of the month to determine next steps,” Chris Downey, Tolko’s communications manager, told iNFOnews.ca in an email.
“We will continue to watch the market and are working with the government around log costs. Unfortunately, high log costs and weak markets continue to impact the forestry industry.”
A news release Tolko issued yesterday, Dec. 28, said the shut down is due to “a lack of available economic fibre and weak markets.”
Armstrong and the Soda Creek mill in Williams Lake are the only two Tolko mills in Canada to shut down. Tolko has eight other mills, plus other operations in Western Canada along with joint ventures in the U.S.
Altogether, 350 employees are affected at the two sites. Armstrong has 165 hourly employees plus managers but some will stay on for safety and maintenance reasons. Downey didn't say how many will continue working.
In the summer of 2019, the Tolko mill in Kelowna was shut down for six weeks but, instead of reopening in September, Tolko announced the mill’s permanent closure.
It’s now the site of a major redevelopment plan that will be revealed to the public early next year.
READ MORE: iN PHOTOS: Heritage, housing and waterfront fun in future for Kelowna’s Tolko lands
Downey would not comment on why only Armstrong and Soda Creek are affected at this time.
“For competitive reasons, we do not publicly forecast or discuss our economic decisions,” he wrote.
The Tolko website says the Armstrong mill was bought in 2004 when it purchased Riverside Forest Products. It includes a lumber mill, plywood plant and a co-generation plant.
READ MORE: Changing times: Tolko closure marks the end of a way of life, says local historian
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