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NEWS RELEASE
For immediate release: October
2, 2003
Tolko makes difficult decision
Vernon, BC – Tolko Industries announced today
that they have made the first major decision in their process to
replace the capacity that was lost when their Louis Creek sawmill
was destroyed by the McLure forest fire.The decision arrived at
today is that the Company will not be rebuilding the Louis Creek
sawmill or a replacement mill in the North Thompson.
Mike Harkies, Tolko’s General Manager Southern
Interior Operations, says the decision was difficult. “We
are aware of the impact this will have on our employees and the
community of Barriere, and we wanted to let them know this decision
as soon as it was made. Plans are in place to set up an Employee
Assistance Centre in Barriere where employees can come and pick
up their severance information and receive employment counseling,
financial and tax planning help, pension information, personal counseling,
and information about employment opportunities at other Tolko locations.
We will be spending approximately $5.5 million in severance, which
is 40% greater than the current collective agreement requires, which
respects the terms of the yet unratified memorandum of agreement
in the interior industry. We will also be working diligenty on a
short-term jobs plan and will be meeting with the IWA right away.
In addition, we are committed to providing resources to assist the
Thompson-Nicola Regional District and the community of Barriere
with economic diversification and development initiatives.”
Tolko’s decision not to rebuild at Louis Creek
is based on a number of factors. “The lack of rail access
and natural gas are major considerations. Another consideration
is the impact of the Canada-US lumber trade dispute,” says
Mike. ”As we continue to examine our options for capacity
replacement the need for global competitiveness and economies of
scale will require us to make decisions which achieve these objectives
and ensures the continued viability and stability of the Company.
We believe there is an opportunity to benefit the financial health
of the southern British Columbia forest industry through timber
trade arrangements and we will look at these opportunities going
forward.”
Tolko is exploring opportunities to expand its production
and employment at its veneer and plywood mill at Heffley Creek.
This facility employs approximately 160 people, and combined with
the woodlands operation in the north Thompson will ensure Tolko’s
ongoing presence in the Valley.
For more information:
Mike Harkies
General Manager, BC Southern Interior Operations
Phone: 250-549-5326
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