Tolko takes a second look at project

By Morning Star Staff http://www.vernonmorningstar.com/

May 27 2007A Vernon-based company is backing off a major expansion in Alberta. Tolko Industries is slowing construction of a new $35 million I-joist plant in Sturgeon County. Brad Thorlakson, president of Tolko marketing and sales, says a review of the project’s timeline is necessary because of poor market conditions. “The outlook is for continuing low U.S. housing starts, a strengthening Canadian dollar and rising transportation costs,” he said. “After considering these factors and our customers’ current needs, we felt this was the most practical decision.” Tolko announced the project in January and it was initially scheduled for completion in late 2007. Thorlakson said building erection and equipment installation will be completed when there is a clear indication of sustainable markets. “Tolko remains committed to this project and the Sturgeon site.” Construction of Tolko's Athabasca division continues near Slave Lake. The price tag of that project is $250 million. Earlier this month, Tolko temporarily closed its divisions in Williams Lake and Quesnel due to market pressures, while its Merritt plant dropped from three to two shifts.