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PRESS RELEASE

For immediate release: July 19, 2007

New equipment to process beetle-killed wood

Kelowna, BC - In a mill tour hosted yesterday, Tolko Industries Ltd. showcased new equipment being installed to tackle manufacturing issues created by the mountain pine beetle.

The $13.4-million investment includes an upgrade to the planer mill and installation of a small-log processing line.

“These capital projects speak to the future of this operation,” says Jim Baskerville, Regional Manager, Okanagan Operations. “The Kelowna Division serves an important role in dealing with the mountain pine beetle in the Southern Interior.”

The new small log line, which uses the latest technology to automatically scan and rotate logs before they enter the saw, will allow Tolko to optimize the quality and quantity of product produced from forests affected by the mountain pine beetle. The planer upgrade features a fully automatic grading machine, providing for enhanced precision in dealing with beetle-killed wood.

“These projects will help us extract maximum value from the fibre we harvest,” says Baskerville, who adds that wood waste and instances of cracked lumber and other defects are on the rise as the company harvests increasing amounts of beetle-affected timber.

Kelowna-Lake Country MLA, Al Horning, who wasn’t able to attend the tour, offered his support for the investment.

“Tolko clearly has a long-term vision for this operation,” says Horning. “By upgrading their equipment to deal with the mountain pine beetle, they’re telling us they expect to be here for a long time. That’s good news for Kelowna.”

Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia with over 4,500 employees. Tolko is a major producer and marketer of lumber, veneer, plywood, oriented strand board, and kraft papers, with manufacturing operations across Western Canada. The Company’s Woodlands operations have received third-party certification of their sustainable forest management systems.


For further information, please contact:

Greg Maralia
Site Manager, Kelowna Division
P: 250-861-6972
E-mail

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