Tolko Industries Ltd. has decided to make the closure of its veneer operation in Kelowna, British Columbia a permanent closure.

The 21 remaining workers of the veneer plant were laid off in October of 2009 and will now be eligible for severence pay. The Kelowna plywood plant has been closed since January, 2007.

The decision to permanently close the facility was due to the long term reduced availability of high quality peeler logs, which has been further impacted by the mountain pine beetle infestation.

The Kelowna site’s sawmill operation and current 170 employees are not affected by this announcement and Tolko remains committed to its continued operation.

Tolko isn’t yet sure what the future of the building is, but it is likely that its equipment will be dismantled and moved to another Tolko operation.

Source:
Tolko Kelowna Veneer to permanently close (Tolko)
Tolko to close veneer plant permanently (Kelowna Capital News)