Wood panelling plant’s revival good news for forestry: Bilous

Tolko Industries Ltd. has reopened a long-dormant structural wood panelling plant in northern Alberta that’s eventually expected to provide 175 jobs, Economic Development Minister Deron Bilous said Tuesday.

The company indefinitely shuttered its High Prairie oriented strand board (OSB) mill in 2008 because of a weak housing market, but helped by municipal support and a $4-million provincial investment tax credit, it resumed operations several months ago, Bilous said.

“It’s significant. Forestry is the second-largest sector in the province,” he said. “This means jobs for the community … The community is obviously thrilled they were able to reopen this facility.”

One key reason for the move was the provincial government’s 2017 decision to extend the Vernon, B.C., company’s forest management agreement for five more years, Tolko president Brad Thorlakson said in a news release last June.

But he also said markets were improving and there was optimism that housing starts would maintain their upward momentum.

“We are confident that current improvements in market conditions are sustainable and that customer demand for Tolko oriented strand board products will remain strong.” At the time, the company also employed 330 people at its High Level lumber mill and 150 people at an oriented strand board mill outside Slave Lake.

Bilous is impressed that 39 per cent of the staff in the High Prairie plant, on the west end of Lesser Slave Lake, are women or Indigenous people.

A company spokesperson couldn’t be reached for comment.

Tolko exports most of its products to the U.S., which has slapped significant tariffs on Canadian firms as part of the softwood lumber dispute, Bilous said.

While the company has indicated those costs are being passed on to consumers, he said the provincial government has hired Canada’s former ambassador to the United States, Gary Doer, to advocate for Alberta’s interests as the two countries try to negotiate an agreement.

He hopes the provincial forestry, which employs about 15,000 people, can diversify to overseas markets.