The Pas’ largest employer has announced it will shut down operations in the province, laying off hundreds of workers.
Tolko Industries announced Monday it will close in December of 2016. Employees have already been notified.
“This is not a decision we have entered into lightly,” said Tolko president and CEO Brad Thorlakson in a news release.
“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.”
The closure affects 332 people. The company said the decision is in no way a reflection on the local community or government.
“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,” said Thorlakson.
“Pretty devastating stuff.”
Jim Scott, mayor of The Pas, said the company didn’t give him any indication that they were in financial trouble.
“It’s been a struggle here for a number of years, but every indication that we had was that they continued to make the best paper in the world,” Scott said by phone Monday.
Scott said he believes the company likely had trouble securing transportation for its products.
“I think we’re going to hear they had trouble getting goods from the mill site to the customer,” Scott said. “It can be difficult to get rail car allotment out of CN. That’s always been an issue.”
Scott said he’s meeting with council tonight to look for further solutions, which will likely include putting a plea to the provincial government for further funding.
Tolko bought the Manitoba Kraft Paper and Sawmill Operations in 1997.
