Tolko extends shutdowns, cites ‘lack of available economic fibre’ in B.C. forestry industry

The end-of-year gloom hanging over B.C.’s forestry industry will extend into the new year with Tolko Industries’ decision to continue the suspension of operations at two mills through the end of January.

Tolko’s announcement this week adds to Canfor Corp.’s Dec. 19 decision to suspend operations at its Intercontinental Pulp Mill in Prince George for four weeks. In both instances the companies cited “lack of available economic fibre and weak markets” as key reasons for the shutdowns.

“While our goal is to ensure a consistency and stability for all of our operations, the steep decline in lumber demand and upward cost pressures in the province make the decision necessary,” said Tolko Vice-President Troy Connolly in a news release.

“Curtailment” is the industry’s term for a short-term shutdown. Tolko will keep 350 of its employees off the job for an extended period, on top of similar suspensions at other companies, such as West Fraser Timber and Canfor.