PRESS RELEASE For immediate release: July 13, 2006
------------------------------------------------------------------------------------------------Vernon, BC - Tolko Industries Ltd. announced today that it plans to build an I-Joist plant which when complete will have the capacity to produce 90 million lineal feet on a two shift basis. The company expects construction and equipment costs to be approximately C$35 million. Various potential locations are still being evaluated. The project team expects to have a location identified soon. Once the property has been secured, plans are for production to begin in 2007 so the new facility can meet customers' purchasing decisions for 2008. Brad Thorlakson, President of Tolko Marketing and Sales, says the new I-Joist facility will process lumber, OSB and strand-based engineered wood into specialty products for world markets. This operation will also have the ability to process other flange materials and will complement our existing facilities in BC and Alberta as raw material from these plants is transformed into high value, engineered wood products at our new value added centre. Brad went on to say, Our announcement today is further evidence of Tolko's commitment to product and geographic diversification and our multi-phased, value added strategy. We are also pleased to respond to our customers' needs and have the ability to provide them with an ever increasing suite of products. Tolko's value added initiatives began in June 2005 with the announced construction of its Athabasca Division, a $250 million engineered wood products mill near Slave Lake, Alberta. Production is targeted to begin in the fall of 2007. Plans are also underway for upgrades at the company's Slave Lake OSB facility. Tolko Industries Ltd. (Tolko) is a Canadian owned, private forest company based in Vernon, British Columbia that manufactures and markets specialty forest products to world markets. With eighteen primary manufacturing Divisions and three sales offices across Western Canada, Tolko is a major producer and marketer of lumber, plywood, oriented strand board and kraft paper.
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DON QUIXOTE NOTE: I wonder what role the Heavy Industrial Municipal Property Tax Rates will play in their decision on location. With Alberta's rates being much lower than B.C. rates and the extreme diversity of rates in B.C. look for a low tax rate location to be chosen, ( all other factors being equal.)
For example:A 35 million dollar plant in Coldstream would be charged $1,047,930 annually at the 2005 Heavy Ind. rate of 29.94088. The same plant in Trail would be charged $653,842 at their 2005 rate of 18.68120 and only $470,722 in Logan Lake. (AND REMEMBER THESE DO NOT INCLUDE REGIONAL OR SCHOOL TAXES WHICH ARE CAPPED AT SET RATIOS .)
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