Tolko Reaches Lumber Agreement with China
Shanghai, China, 16 May 2010 – Tolko Industries Ltd. has signed another major purchase agreement with China National Building Materials as the market for forest products from British Columbia, Canada, continues to grow at a steady rate in 2010, Premier Gordon Campbell announced today.
Tolko signed its first major supply agreement with China National Building Materials in November 2009 as part of the largest-ever forest industry trade mission to China led by Forests and Range Minister Pat Bell. The volume for this agreement is mostly to be supplied by Tolko’s Quesnel operation. This latest agreement will be filled by other Tolko operations.
"The cooperation between the B.C. forest industry and governments to promote wood use in China are key to the success we’re seeing today,” said Tolko president and CEO Brad Thorlakson. “We look forward to a long relationship with China National Building Materials.”
These agreements are for spruce, pine, and fir lumber in a full range of grades and dimensions. China National Building Materials will distribute the lumber throughout China for a range of end-uses including concrete forms, remanufactured products for the apartment decorating and furniture markets, structural framing, and reroofing projects.
China is the fastest growing export market for Canadian wood products, with most of the lumber sourced from British Columbia. In 2009, lumber exports from British Columbia to China reached 1.63 billion board feet, double the volume of 2008, and were valued at CAD 327 million.
Exports to China in 2010 are off to an even faster start with lumber shipments to the end of March, double what they were for the same three-month period in 2009.