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Tolko to Curtail Stud Mill Operations

Vernon, British Columbia, Canada, 03 June 2009 -- Tolko Industries Ltd. announced temporary curtailment at two of its British Columbia stud mill operations due to the continued lack of demand and product take away. The recent rise of the Canadian dollar has further contributed to the negative financial results of the lumber industry.

Production will be curtailed at the Kelowna and Armstrong facilities, the manufacturers of Tolko’s Riverside brand 8-foot and 9-foot studs. The shutdown is initially scheduled for one week, beginning 08 June, and will be reviewed weekly. Tolko’s remaining stud mill, the Soda Creek Division at Williams Lake, will remain curtailed during this period.

“More than 355 Okanagan employees will be affected,” said Jim Baskerville, regional manager, Okanagan Operations. “This announcement does not reflect the performance of our employees who continue to work safely and productively. We deeply regret the effect this decision will have on them as well as their families.”

Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia. 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.


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