Vernon, British Columbia, Canada 22 August 2016 -- Tolko Industries announced today that it will close its Manitoba operations on December 2nd, 2016.

"This is not a decision we have entered into lightly," said President and CEO, Brad Thorlakson. "Over the 19 years we have been in the community, a great deal of work has been done, both internally and externally, to improve the mill's competitive position. Unfortunately, despite years of continued effort to improve the cost structure and business results of the operations, the business is not financially sustainable. This is a business decision that is in the best long-term interest of the company and our employees."

Thorlakson notes that the decision is in no way a reflection of the people, community or local and provincial governments who have played such an important role in the operation over the years.

"We have valued our time in The Pas and have great respect for the community and our employees who have been with us on every step of this journey. We understand that this will be a very difficult time for them and the community, but we cannot continue to sustain the losses at the operation."

Jim Baskerville, Vice President of OSB and Kraft Papers added that employees have been informed of the decision.

"Today we have issued notice to employees, and we are working through the details of a transition package," he said. "We anticipate full details to be available to employees the week of September 6th and, as the closure process is not immediate, we will have time to ensure any questions or concerns around the transition package are addressed before operations conclude on December 2nd."

Baskerville also reaffirmed Tolko's commitment to customers of the Manitoba operation. "I want to assure our customers that our fibre supply is secure and we are well equipped to fulfill our commitment to customers until closure is complete."

Tolko purchased the Manitoba Kraft Paper and Sawmill Operations in 1997. The combined operation employs 332 people.