Sunday, January 21, 2007

City wins one, loses one (Kamloops)

By MARKUS ERMISCH Staff reporterJan 21 2007 http://www.kamloopsthisweek.com/

Tire plant to expand, while forestry firm chooses Alberta for new plant Kamloops is the place where Kal Tire rubber meets the road, but Tolko has taken a shine to another neck of the woods for its newest plant. Vernon-based Kal Tire has decided to move a retread plant from Edmonton to Kamloops, whereas Tolko, a forestry company also based in Vernon, has selected Alberta’s capital for its new I-joist plant.

Kamloops had been shortlisted as a possible location. Kal Tire’s expansion of its Kelly Douglas Road plant — the company is adding a 15,000-square-foot building to the existing structure — is expected to pump $5 million to $6 million into the Kamloops economy, according to Michael Eibl, the manager of new business development of Venture Kamloops. The enlarged Kal Tire retread plant will have an annual payroll of $1.1 million and will employ 60 workers.

Meanwhile, Kamloops lost out on a bid to attract Tolko’s newest plant to the shores of the Thompson River. Tolko, which already operates a plant in Heffley Creek, decided instead to locate the $35-million project in Sturgeon County near Edmonton. Jonathan Rogers, Tolko’s general manager of marketing and sales, said Kamloops made a shortlist of three candidates. In the final analysis, however, Sturgeon County had better transportation connections. A difference in the price of land between the Alberta community and Kamloops, Rogers said, was not a decisive factor.

Venture Kamloops head Jeff Putnam said he was disappointed Tolko didn’t select Kamloops, but discovered a bright side in the decision. “We were really hopeful. We thought our biggest strength was the availability of workforce,” he said, pointing out that Edmonton, more so than Kamloops, has a serious lack of skilled workers. “It’s too bad, but we put our best foot forward.”Putnam said the discussions with Tolko nonetheless had the positive result in that Kamloops was able to showcase itself.

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