Tolko announced that it is implementing a flexible operating footprint at its Soda Creek and Armstrong stud lumber mills. This change will reduce the company’s operating stud capacity by 20%.

Vice President, Solid Wood, Troy Connolly says the decision is a result of high log costs in B.C. and weak market conditions.

“The continued and increasing pressures on log delivery costs in B.C. have eroded our competitiveness. This, in addition to continued weak markets, means we must take immediate and responsible action to ensure our long-term stability in B.C. We are moving to a flexible operating footprint starting next week. We will continue to monitor our cost competitiveness regularly to determine if further downtime is required. Our top priority is sustaining the business and the many jobs and economic spin-offs it provides to our communities.”

Tolko is a leading manufacturer of a wide range of forest products for customers around the world, including lumber, plywood, veneer, oriented strand board, co-products, biomass power, and a growing number of specialty wood products.