The Tolko takeover of Weyerhaeuser’s Slave Lake oriented strandboard operation was completed on Feb. 27. On Mar. 1 and 2, the top management of the new owner was in town to meet and talk to employees, as well as meeting the public.
The public meeting was at the Northwest Inn on Tuesday evening. Company President Al Thorlakson and Rick Huff, Tolko’s General Manager for OSB and Kraft Papers, both made brief speeches, and Huff answered questions. Interestingly, there were only two questions, neither one about whether Tolko plans to upgrade the mill. However, both Huff and Thorlakson gave strong hints about it.
Thorlakson spoke of the history of the company – starting as a planer mill at Lavington, B.C. in 1961 and gradually expanding. The establishment of the OSB mill in High Prairie 10 years ago was the first step outside B.C., he said, and its success served as the foundation for all that has come since. That includes a recently opened OSB plant in Meadow Lake, Saskatchewan and the purchase of a sawmill at High Level.
Thorlakson said the next four to six months will be a period of strategic planning for the Slave Lake operation. After that?
“We’re prepared to invest as required to make it a world class facility in whatever niche we decide,” he said. “Our goal is to make it a competitive asset.”
Someone asked about the sharing of wood between Tolko’s High Prairie and Slave Lake mills. Huff said that there would be some movement of wood between the two FMAs, based on what makes economic sense. He said he anticipates each facility would end up using about 900,000 cubic metres of fibre per year. The Slave Lake mill currently uses roughly 378,000 cubic metres of its 600,000 cubic metre annual allotment.
It was that shortfall in utilization that apparently forced Weyerhaeuser to make the decision to sell. Faced with the possibility of losing the unused timber if it didn’t expand the mill, Weyerhaeuser decided to pull the plug rather than pay for mill expansion. They got $56 million from Tolko for the whole works – mill and woodlands.
Another questioner asked what products the company might be planning to produce at the Slave Lake mill. Huff said it would continue producing OSB flooring for the time being, but that there is “a whole array of product possibilities,” for the future.
As for the role Tolko will play in the community, Thorlakson noted in his speech how impressed he is with “how active the employees are in the community.” He pledged that such community involvement would continue.
There haven’t been many changes in personnel at the Slave Lake mill and woodlands as a result of the Tolko takeover. Mitch Gregoire did lose his position as mill manager, however. Tolko has not yet announced his replacement.
Ian Whitby will remain as woodlands manager of the Slave Lake FMA. Joining him in the woodlands offices will be Dave Knight, as regional woodlands manager for the company, overseeing the operations in High Prairie, Slave Lake and Meadow Lake.

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