NEWS RELEASE

Tolko’s investment plans in Alberta take shape

Edmonton, AB - Investment plans for Tolko Industries Ltd.’s (Tolko) operations in Alberta are progressing well, confirms the Company’s Vice President and General Manager of OSB and Kraft Papers.

Rick Huff says that Tolko’s strategic review of its Alberta assets is complete and a number of development opportunities were identified. “The ‘Alberta Advantage’ is making this province a welcome place for our investment,” says Huff. “We look forward to expanding our engineered wood business within this province over coming months.”

The focus for Tolko is turning to its oriented strand board (OSB) operations in High Prairie and Slave Lake, now that the enhancement of its lumber mill in High Level is underway. The High Level mill is currently in the first phase of a three-phase $65 million expansion.

At the Slave Lake OSB plant, which Tolko purchased from Weyerhaeuser in February, the Company is analyzing a number of modernization options. “We will increase production capacity to make the operations there world scale,” says Huff. “The expected capital cost of this project is forecasted at approximately $220 million and is our number one capital priority.”

Tolko is evaluating a number of value-added opportunities in relation to its High Prairie OSB plant. “The timeline and extent that these opportunities will be acted on are contingent on our success in attaining additional fibre supply to allow the expansion to take place,” Huff explains.

In Alberta, Tolko provides direct employment for over 630 people in its manufacturing facilities. During peak harvesting season this number increases to over 1800. The Company contributes approximately $87 million to the province in direct and indirect wages, and provincial and municipal taxes.

Tolko Industries Ltd. is a family-owned private forest products company based in Vernon, British Columbia, which manufactures and markets specialty forest products to world markets. The Company was incorporated in 1961 and has grown to more than 2,400 employees in 10 manufacturing divisions and three sales and marketing offices in British Columbia, Alberta, Saskatchewan and Manitoba.

For more information:

Back to News Releases