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Read our story Tolko Industries Ltd Powered By Docstoc
					The first 50 years … 1956 - 2006




In 2006 we celebrate the 50th anniversary of Tolko
Industries, its beginning represented by a small planer mill
in Lavington, BC.
However, the Company's true beginnings stretch much
further back. They are found in the belief that with
effort and focus is the possibility of success; a philosophy
embedded in our father, Harold Thorlakson, by his mother
and father. They were formed in the family values instilled
by our parents in each of their children and demonstrated
through their relationships with others. You can trace the
Tolko of today to the vision Harold began developing
throughout his early adulthood, a goal supported and
encouraged by our mother Jemma.
In fact, the roots of our Company sprout from a vast range
of experiences that offered opportunities and affected
the direction of those early days. Tolko's growth to employ
5000 and operate 18 primary manufacturing divisions
across Western Canada is a result of a tremendous number
of people who contributed along the way.
The industry has dramatically changed since 1956,
as has Tolko. But our journey remains guided by those
same values and strategic business sense instilled
throughout the years. Tolko's success is in no small
part attributed to its people who see challenges as
opportunities for growth and innovation.
Tolko's story so far is told here. We are pleased to share it
with you.



J. A. (Al) Thorlakson, President & CEO




J. E. (John) Thorlakson, Executive Vice President
Through the generations … 1890 - 2006




Thorlakur and Ingibjorg      Harold Thorlakson held the                Harold and Jemma instilled                Doug, Al, and John - the second      Al's son Brad and John's son Ken
Thorlakson came to           vision for a leading forest               traditional values and appreciation       generation of Tolko                  continue in the family business
Canada in the 1890s          products company                          of hard work in their sons




Al Thorlakson, 1987                                Early times
“We're a family company, and that                  In the grasslands of BC's interior, high above the present-        generation of hardworking entrepreneurs. The children
 family includes everyone that works               day city of Vernon, is a group of run down buildings—the           pursued diverse enterprises such as raising sheep,
 here.                                             remains of a family ranch where a father, a mother, two            keeping bees, supplying kokanee salmon to Vancouver
    I'm the leader, that's true, but               daughters, and six sons carved out a living in the early           buyers, and shipping carp to markets in New York. They
    without the ongoing input of every             years of the twentieth century.                                    also began to understand the value of the forest resources
    one of our people, I would be the                                                                                 surrounding the ranch.
                                                   The parents, Thorlakur and Ingibjorg Thorlakson, had
    leader of very little.”                        coincidentally and separately left the harsh economic
                                                   conditions of Iceland, in pursuit of a better life in North        Founding years
                                                   America. They met in Winnipeg, fell in love, and married
                                                                                                                      Harold, fourth son of Thorlakur and Ingibjorg, started
                                                   before arriving in the Okanagan Valley in the late 1890s.
                                                                                                                      logging in the early '50s close to home: the Commonage
                                                   Proximity to a suitable school led them away from the              and Okanagan Landing, Glenmore, and Carr's Landing.
                                                   shores of Okanagan Lake to an area known as The                    Meanwhile his younger brother Joe moved around the
                                                   Commonage where they established the family ranch                  region with a portable sawmill cutting railway ties at
                                                   and saw that each of their children received a good                Okanagan Landing, and clearing government timber for
                                                   education. The young ones eventually went on to                    hydro lines in the Monashee Mountains. Joe eventually
                                                   Teachers College, Business College, and University.                moved his operation to Lavington on property leased
                                                   Ranch life was hard and the Thorlakson children were               from the Jeffers' family.
                                                   expected to contribute as they grew. This created a                It became apparent to Harold that greater opportunities


2
   Lavington Planer Mill - Tolko's birthplace … 1956 - 2006




The birthplace of          The mill's first employee             Derry Ewart, Harold's brother-in-law,   Jake Wierenga, first sawmill            Today the Lavington operation
Tolko—the original         was Bruce Jeffers                     joined as planerman in 1959             employee, was part of LPM               has over 250 employees
Lavington Planer                                                                                         for 34 years
Mill (LPM)




                                                                                                                                        Lana Brander,
   were available in marketing and planing lumber. With his       bought rough lumber from portable sawmill owners                      Business Services Team
   brother Joe and Joe's son Harold M. Thorlakson, Harold         operating in the interior forests, planed it, and then sold           Meadow Lake OSB
   set up a new business on the Jeffers' family property in       the finished product to a growing list of customers
                                                                                                                                        “I was born and raised in Meadow
   Lavington in 1954. The partners contracted a machinist,        throughout the Okanagan Valley. A tough but fair
                                                                                                                                         Lake, Saskatchewan so I was pleased
   Theo Fandrich, to bring his self-built, portable planer        businessman, Harold was best known for keeping his
                                                                                                                                         Tolko chose Meadow Lake as a place
                                                                  word, prompt payment, and a cheque that was always
   to the site to do custom planing. However, times were                                                                                 to build a new OSB operation.
                                                                  good. Most deals with Harold were sealed with a
   challenging and the business was unable to sufficiently                                                                               Tolko's commitment to continued
                                                                  handshake.
   sustain multiple families. In 1956 Joe and his son                                                                                    education and the relentless
   returned to their portable sawmill operation and Harold        Harold carefully selected his raw material, steadily                   aspiration toward excellence makes
   purchased their shares in the Lavington Planer Mill. This      growing his business on quality and service. He received               me proud to be part of this company.
   operation—which sat on the site of today's Lavington           a major boost when he secured a contract to supply the                 Our unique team atmosphere has
   Planer Division—would eventually be known as Tolko             timbers and lumber for the construction of the Okanagan                helped us break down traditional
                                                                  Lake Floating Bridge. The bridge, nearly a mile long on                business barriers and focus on our
   Industries Ltd.
                                                                  the south side of Kelowna, BC, officially opened in 1958.              common goals. We also have a lot
                                                                                                                                         of laughs in the meantime!
   Building a business                                            Harold purchased a planer from Hoover Sawmills Limited
                                                                  in 1959 with the help of his brother-in-law, Derry Ewart.
                                                                                                                                         Happy 50th Anniversary Tolko!”
   Harold used skills he developed while working for Union        Lavington Planer Mill started its own manufacturing
   Oil and his natural sales ability to build his business. He    shortly after and was incorporated August 21, 1961.


                                                                                                                                                                                 3
Values and strategic growth … 1956 - 2006




Harold receiving an         Bob Patterson (centre) strategic         Sales have grown from local to            Darlene Wolney, Office Manager,       The President's Safety Award is
industry safety award       planning with Fred Stehle and            international markets                     helps Al open Vernon Office,          presented annually to the Division(s)
in 1963                     Joe Martinago in 1986                                                              August 25, 1988                       with the best safety record




Jim Knight                                         From logs to lumber
Woodlands Manager,
                                                   One of the steady suppliers of rough lumber to the planer        to Tolko Industries Ltd., a name derived from every other
Okanagan Operations                                mill was the Schunter family, active loggers and owners          letter of the Thorlakson family name.
“I was 20 years old and studying                   of a portable sawmill. When young Bob Schunter
 Forestry in Vancouver. A fellow
 named Bob Reid was in town
                                                   decided to focus on logging in the 1960s, a long term
                                                   relationship began. Soon after, Bob delivered the first
                                                                                                                    The legacy begins
 interviewing summer students for                  load of raw logs to the Company, solidifying a                   Throughout this period, Harold and his wife Jemma were
 work in the bush for Lavington Planer             relationship that continues today with R.J. Schunter             raising three sons: Doug, John, and Al. Harold
 Mill Ltd. I was interested, as it would           Contracting Ltd. of Lumby, BC.                                   Thorlakson's early years had taught him that success was
 be my first position in the industry                                                                               achievable with hard work, discipline, honesty, and faith
                                                   Equipped with a sawmill and planer, Harold needed to
 and was located just out of Vernon                                                                                 in one's fellow humans. Jemma and Harold saw that
                                                   add to the workforce. The core group that formed would
 where I had lived while completing                                                                                 their three sons also learned these values and the related
                                                   make a strong contribution to these developing years.
 school. That was 1975—31 years ago                                                                                 principles of operating a family business, as they worked
                                                   Among them were Bruce Jeffers, the mill's first employee
 this spring. It has been and continues                                                                             alongside their dad logging, and later, at Lavington
                                                   and part of the family who had owned the mill site, and
 to be an extremely interesting and                                                                                 Planer Mill.
                                                   Derry Ewart, Harold's brother-in-law and planerman.
 exciting career. It has given me great
                                                   Sawmill expertise came from newcomer Jake Wierenga,              The three boys pursued individual interests and
 pride and satisfaction to be part of
                                                   a sawyer with a strategic mindset who would be a                 experiences before their skills and aspirations drew them
 Tolko's success and growth over the
                                                   mentor to many employees over the next 34 years. A               back to the family business. Doug spent his early years
 years.”
                                                   permanent sawmill was established in 1968. In 1973 the           with some of the interior's industry-leading organizations
                                                   Company name changed from Lavington Planer Mill Ltd.             of the time: Kelowna Growers Exchange, S & K Plywood


4
      Forest sustainability … 1956 - 2006




Harold Thorlakson and sons   Doug Thorlakson and Bob Schunter,           Tolko is committed to sustainable   Randy Chan, environmental leader,          The Mountain Pine Beetle
logged in North Glenmore     the original harvester, revisit this site   forest management                   plants Tolko's 50 millionth seedling,      epidemic of BC forests is changing
in 1954                      in 1991                                                                         1995; 500 millionth will be planted        the industry
                                                                                                             in 2006




                                                                                                                                               Vernon Daily News, 1988
      of SM Simpson Ltd., North Lake Lumber in Beaverdell,                sales employees as they advanced their careers with the              “In 1988 Al's hometown newspaper
      and the BC Forest Service. Doug rejoined Harold in                  Company. John's role evolved as the Company grew,                     voted him Businessman of the Year,
      1962, working in the mill and driving trucks before taking          taking him to his current position as Executive Vice                  describing him as “a conservative
      on the forestry side of the business. He performed as               President.                                                            and unassuming man whose
      woods manager until Provincial regulations required                                                                                       appearance masks a forest industry
                                                                          After Al finished his studies at the University of BC, he
      companies to hire professional foresters. At that time,                                                                                   executive whose imagination and
                                                                          worked for three years as Plant Engineer for Weldwood in
      Doug switched gears and began operating logging trucks                                                                                    drive have helped him respect his
                                                                          Quesnel, during which time he obtained his Professional
      in conjunction with Tolko's Woodlands activities.                                                                                         father's goal of preserving a family
                                                                          Engineer designation. Al focused his efforts on the
      Harold and Jemma placed a high value on education,                  manufacturing side of the business when he returned to                business while creating a dynamic
      and Jemma's nursing career helped support the business              Lavington Planer Mill Ltd. in 1967. He became President               and progressive company.”
      in its early years and John's and Al's post-secondary               of the company in 1972 and was appointed Chief
      pursuits. John and Al went onto the University of BC to             Executive Officer in 1981 when Harold passed away.
      complete Bachelors of Applied Science in Engineering.
      John then further earned a Masters in Mechanical
      Engineering from McGill University. He worked in the oil
                                                                          Developing Woodlands
      and gas industry and achieved his Professional Engineer             Sawmill technology in the early 1960s had evolved to a
      designation before coming back in 1970 to manage the                point that smaller trees, like lodgepole pine, now had
      mill's sales business. John led Tolko's marketing and sales         economic value. During the same period, Ray Williston,
      business for many years, mentoring and training Tolko's             Minister of Forests for the BC Government, developed a


                                                                                                                                                                                         5
    Wilson St. Goddard, Retired, Heffley Creek Division
    “I started work at Balco Industries on Feb. 25, 1975. When Tolko bought
     Balco Industries in 1987, most employees stayed on. It was great working
     for Tolko. My most memorable moment was being recognized for my
     dedication to safety. I spent 28 years on the safety and Employee and
     Family Assistance Program (EFAP) committees and was safety committee
     chairperson for many years. The weekend at Silver Star was fantastic.
     I remember talking with Mr. Al Thorlakson and his brother John at Mr.
     Al Thorlakson's cottage. He and his wife made coffee for my wife and me.
     Tolko is the only company I've ever worked for where management is so
     approachable—especially the CEO, Mr. Al Thorlakson. It's been great
     knowing you over the last 30 years.”
                            Harold Thorlakson, founder of Lavington Planer, later renamed ‹
                                     Tolko Industries Ltd., and the mill's first lumber truck




    revolutionary plan for the growth of the interior pulp industry based on residual           Manager. Well experienced with lodgepole pine, Bob connected Tolko's
    chips. Having taken a fresh look at the commercially viable inventory of BC                 harvesting and forest management to close utilization standards.
    forests, Ray introduced the “third band” utilization policy in 1969.
                                                                                                These strategic moves ensured the company was positioned to utilize the
    Third band was essentially a reward, in the form of additional cutting rights, for          government's third band policy in the late 60s and early 70s, securing Tolko a
    firms that harvested smaller trees following a standard referred to as close                place in the reshaped industry of BC's interior.
    utilization. New processing technology, such as barking and chipping
    equipment, was required and supported Ray's pulp mill vision. In addition to
    driving technological advances, third band timber sales signified the end of                First major growth
    portable mills as a major factor in the industry. No longer would the mills go              Harold had a long working relationship with a mill on the Okanagan Indian
    to the wood; the wood would come to the mills. Consolidation occurred                       Band reserve that was already cutting lodgepole pine and had received a large
    throughout the interior of BC as stationary operations were established along               increase in third band volume. In 1973 Lavington Planer Mill Ltd. made its first
    railways, bringing steadier employment and more community stability.                        major acquisition, effectively doubling in size with the purchase of Hoover
    While working in the Cariboo, Al had observed lumber producers successfully                 Sawmills Limited.
    processing lodgepole pine. While most lumber manufacturers in the Okanagan
                                                                                                When fire destroyed the Hoover operation in 1975, the Company consolidated
    did not realize the opportunity, this Cariboo experience prompted the
                                                                                                it in Lavington. A second sawmill line and a graveyard shift was added to help
    Thorlaksons to proactively modify Lavington Planer Mill's timber acquisitions
                                                                                                accommodate the growth. The veterans openly welcomed the Hoover
    and processing equipment.
                                                                                                employees who, in return, embraced their new environment. This experience
    Al had recruited a colleague from the Cariboo, Bob Reid, as Tolko's Woodlands               anchored the strong family culture that permeates the Lavington site to this day.


6
                                                                                      Tony Billey, Banderman, Quest Wood Division
                                                                                      “We arrived in Quesnel in 1989 with few possessions and no money. When I
                                                                                       started delivering pizzas, friends asked, “Why are you doing this? You're not
                                                                                       making much more then welfare pays.” I told them, “No job leads to no job,
                                                                                       but a job will lead to a better job.”
                                                                                        On one delivery, I asked a foreman at Tolko why they always ordered pizza Friday
                                                                                        nights. He said that a lot of guys didn't show up for work on Friday nights. The
                                                                                        guys who did, then would have to work overtime, so they bought them pizza.
                                                                                        He then asked me why a guy my age was delivering pizzas. I told him that while I
                                                                                        was looking for something better, it put food on the table. He told me to bring
                                                                                        my resume to him the next time I came in. I did and here I am—13 years later.”

                                                                                     ¦ Al, Doug, and John Thorlakson, second generation of the company,
                                                                                       with Harold’s restored lumber truck in March 2006




Harold Thorlakson handed over control of the company to Doug, John, and Al             product name, Tolko Topflight, was introduced to the North American cedar
in the late 1970s. Jemma passed away in 1979 and Harold suffered a stroke and          market. Tolko operated Inlet Cedar for nearly 10 years before closing the mill
passed away in 1981. However Jemma and Harold had embedded in their sons               in part due to the failure of the small business program.
a vision for the company as a family business.
Acting on Al Thorlakson's and Bob Reid's Cariboo experience, Tolko purchased Ernst
Forest Products at Quesnel in 1981. Tolko invested in manufacturing improvements,
                                                                                       Strategic Planning
changed the Division's name to Quest Wood Products, and established a                  Tolko began the strategic planning process that is used throughout the
modernized mill that continues to evolve and perform efficiently to this day.          company today in 1986. Initiated by Bob Patterson, manager of planning and
                                                                                       marketing, it fundamentally engages employees at all levels of the company.
In 1987 the Company purchased Balco Industries whose head office and main              The process encourages multiple perspectives and provides employees a
manufacturing plant were located in Heffley Creek, BC, with branch                     shared vision and clarity regarding their roles in executing the plan.
operations in Merritt and Louis Creek. Balco was originally owned and
operated by the Balison family of Kamloops, but in recent years had changed            Company executives drafted the mission statement that remains the guiding
hands a number of times. Tolko's strategic planners saw the potential in these         principle for Tolko today: “To be an environmentally responsible and
assets and a successful purchase was concluded. The acquisition included the           innovative company that prospers and grows by serving the needs of diverse
Heffley Creek plywood plant, launching Tolko into the plywood business—a               customers in world markets, with products derived from the forest.”
first step toward product diversification.                                             Clarification of the company values was done at the same time. The
In 1988 the Company purchased Nova Lumber, located near North Vancouver                five Thorlakson family principles Harold and Jemma had applied to the
on Burrard Inlet. Inlet Cedar became the new divisional name and a new                 daily operation of the business were formally stated: Respect, Integrity,


                                                                                                                                                                           7
Acquisitions and greenfield projects … 1956 - 2006




Ernst Forest Products,      Balco Forest Products, including       Nova Lumber, 1988, renamed Inlet          First "greenfield", an OSB             Repap sawmill and kraft papers
renamed Quest Wood          Heffley Creek plywood and Nicola       Cedar Division                            operation in High Prairie, AB, 1994    mill in The Pas, MB, 1997
Division, in Quesnel,       Valley sawmill operations, 1987
BC, 1981




Gary Tessaro, Filer
Lavington Planer Division                       Open Communication, Profit, and Progressiveness. All              nature, the Company made precedent-setting agree-
“Two weeks of holiday relief work has           employees are expected to embrace these company                   ments with First Nations communities. Tolko secured an
 turned into 26 years. In this time I           values and managers are evaluated on how effectively              innovative fibre supply agreement and received approval
 have completed my Benchman's ticket            they demonstrate these values at the workplace—a                  of its application in 1994 to construct an OSB mill. This
 at BCIT in 1986, been on the safety            testament to the key role the values play in shaping              would be the Company's first greenfield, 'built from
 committee for 7 years, helped                  Tolko's journey.                                                  scratch' operation.
 organize many golf tournaments,
 helped out with Christmas parties and
 was especially proud to wear the blue
                                                Diversification pursued                                           Tolko's High Prairie Division was also the first of what
                                                                                                                  became known as a third generation OSB mill with 50%
                                                Product and geographic diversification became                     greater capacity than the existing industry average. On
 and white colours of Tolko into the                                                                              January 31, 1996 Tolko's first load of OSB arrived on a
                                                fundamental to Tolko's strategic direction in the early
 B.C. Open Pro-Am Golf Tournament at                                                                              customer's doorstep in Salt Lake City, Utah. Now in its
                                                90s. To fulfill this initiative, the company looked toward
 Predator Ridge in 1993. Tolko also has                                                                           tenth year of operation, High Prairie Division produced
                                                the northern Alberta town of High Prairie, which
 afforded me the time to be the                                                                                   its millionth pressload in 2004.
                                                was actively seeking investment and employment
 Southern Interior Director of the B.C.
                                                opportunities. Over the years, Canadian and Asian                 Tolko pursued further diversification with a move into kraft
 Sawfilers Association for the last 4
                                                investors had shown interest in the community, but no             paper manufacturing and sales. The Company purchased
 years. Volunteering at the Tolko tent
                                                major projects had materialized.                                  Repap Manitoba in The Pas in 1997. The acquisition included
 at the I.P.E. gave me a chance to meet
 many people and tell them who we               That is until Tolko's Bob Reid and Dave Knight came               a sawmill—familiar territory for Tolko—and a pulp and paper
 are at Tolko.”                                 along. With the help of their vision and adventuresome            mill. The paper business proved to be a learning curve for


8
     Acquisitions and greenfield projects … 1956 - 2006




DMI High Level Lumber,        Meadow Lake OSB, built with First       Slave Lake OSB, from Weyerhaeuser,    Riverside Forest Products, Tolko's       Athabasca Division, begins
High Level, AB, 1999          Nations, Metis, and government          2004                                  largest acquisition, 2004                production of engineered wood
                              partners, 2002                                                                                                         products Fall 2007




                                                                                                                                            Charley Hampton, General Manager,
     Tolko. In true Tolko fashion, employees greeted the challenge    first Sustainability Report in 1998, the Company reinforced           Corporate Services (former Area Manager,
     of manufacturing and marketing this new product line.            its commitment “to the well-being of future generations               Quest Wood Division)
                                                                      through responsible environmental performance.”                       “Anyone who has walked through a
     Tolko wrapped up its acquisition activities as the '90s closed
     with the purchase of another sawmill. This operation, in         The Company sought independent verification of its                     sawmill with Al Thorlakson knows he
     High Level, Alberta, was owned by Daishowa Marubeni.             environmental practices and committed to stakeholders and              doesn’t miss a thing. In 1988 we
     One of the largest lumber producers in the province, the         customers that its Woodlands would achieve third party                 installed Tolko’s first optimized edger
     operation became High Level Lumber Division.                     certification of its forest management. Tolko continues to             at Quest Wood, and with significant
                                                                      embrace ISO 14001 and the internationally recognized                   trepidation I toured Al through the mill
     Sustainable approach                                             certification of the Canadian Standards Association across
                                                                      all its Woodlands.
                                                                                                                                             to see it. Al stood there for a full five
                                                                                                                                             minutes, watching boards go through.
     Throughout the years, increased social attention, research,                                                                             The longer he stood there, the more
     and best practices contributed to the evolving stewardship
     of the forests. As the millennium drew to a close, Tolko set     Customer Driven                                                        concerned I got. Finally, he turned to me
                                                                                                                                             and, beaming, he said, “Man, I love it
     about putting on paper its approach to sustainability and its    As Tolko evolved, the emphasis on sales expansion grew                 when we do something right!” Needless
     commitments for responsible management of the forest             under John's careful management. The once Okanagan                     to say I was very relieved and extremely
     resource.                                                        Valley-based marketing efforts took on national and                    proud of my installation crew.”
                                                                      international dimensions.
     Tolko developed Environmental and Aboriginal Policies, and
     formally stated its Forest Management Principles. With its       A distribution department was established to handle the


                                                                                                                                                                                     9
Woodlands … 1956 - 2006




Loading stud logs, 1950s   Bob Reid, key with lodgepole pine         Dave Knight, once tagged "Tolko's       Kineshanko Logging, one of Tolko's     Forest education is part of Tolko,
                           strategies and east-of-the-Rockies        Lodgepole Locator", part of growth      many long-term contractors             such as the annual Open House
                           growth                                    across Prairies                                                                in High Level




Al Thorlakson, 1986
                                                  direct sales to dealers and in 1975 the Company launched         profoundly impact the supply and distribution chain.
“Achievement is never accidental.                 Mara Lumber with retail outlets in Salmon Arm, Vernon,           Manual tasks gave way to computer-based applications.
 If you examine any success story,                and Kelowna. The chain was sold in 1991 in an effort to          Railroads maintained their crucial industry role,
 you will find three things: careful              refocus exclusively on the manufacturing and wholesale           prompting Tolko to acquire its own fleet of railcars.
 planning, dedication to the project              of wood products.
 and hard work by all those concerned.                                                                             Tolko Marketing and Sales Ltd. was launched in 2003 for
 The future success of Tolko Industries           Establishing reload yards at a rail line to temporarily hold     its marketing, sales, and transportation functions. This was
 certainly depends on these three                 product opened up a new market for Tolko. It was now             an important step in positioning Tolko for the customer-to-
 elements.”                                       economical for retail outlets, developers, and distribution      tree strategy being embraced today. Under the leadership
                                                  centres situated away from railway lines to directly             of Brad Thorlakson, President, Tolko Marketing and Sales
                                                  purchase truckload quantities, significantly expanding           innovatively supports Tolko's manufacturing business to
                                                  Tolko's target customers.                                        meet customers' increasingly diverse needs. Tolko
                                                  Market growth continued to accelerate. The addition              Marketing and Sales' annual sales exceeded $2.3 billion
                                                  of an export department was followed by a brokerage              in 2005 and products were marketed in twenty countries
                                                  department in 1985. “Customer oriented, results focused”         world wide.
                                                  became the mantra as the sales teams strove to provide
                                                                                                                   Tolko celebrated the launch of a new kraft paper sales
                                                  top customer service based on strong relationships and
                                                                                                                   office in September 2005. A partnership was reached with
                                                  industry knowledge.
                                                                                                                   Canadian Forest Products (Canfor) to jointly market
                                                  Technology, especially information technology, would             bleached and unbleached kraft papers to markets around


10
     Changing technology … 1956 - 2006




Auto engines powered         First debarker at LPM               The MKII - 2" Chip 'n' Saw was       Armstrong's Cogeneration plant            Innovative design and modern,
portable sawmills, as this                                       "modern technology" in 1973          uses hog fuel to produce steam            proven technology contribute to
Balco mill, Heffley                                                                                   and electricity                           Meadow Lake OSB's success.
Lake, 1946




                                                                                                                                       Peter Meyer,
     the world. The aptly named Premium 1 Papers operates        years, wildfires raged across the province. The McClure-
                                                                                                                                       Plant Manager,
     from their offices in Kelowna, British Columbia.            Barriere fire in the Thompson-Nicola region consumed
                                                                                                                                       Slave Lake OSB Division
                                                                 Tolko's Louis Creek sawmill on July 30, 2003 and after a
     Staying the course                                          thorough analysis, the difficult decision was made to not
                                                                 rebuild.
                                                                                                                                       “In Slave Lake we have relied on
                                                                                                                                        technology and strategic investment
     Tolko announced in 2001 its intent to construct a world-                                                                           to keep us viable. Industry insiders
                                                                 Despite the setback, Tolko forged ahead with other                     cannot believe the output of our
     class OSB mill near Meadow Lake, Saskatchewan. The
                                                                 strategic initiatives. When Weyerhaeuser's OSB mill in                 facility.
     result of five years of research and planning and another
                                                                 Slave Lake, AB, became available in 2004, Tolko saw the
     two years of construction, the Meadow Lake OSB Limited                                                                             Our strength has been the people
                                                                 opportunity to expand its panel business and the wood
     Partnership began production in 2003. In addition to the                                                                           that work here and a willingness to
                                                                 supply for its Alberta operations.
     advanced technology and capacity of the operation, the                                                                             embrace new ideas and different
     project signified a milestone in Tolko's relations with     Later that same year, Tolko made the largest acquisition of            ways of delivering the end result.
     Aboriginal communities. Partners in the project include     its 50-year history with the purchase of BC-based Riverside            In a nut shell today's workers are
     Meadow Lake Tribal Council, representing nine First         Forest Products in October. The acquisition added 2,500                intelligent and need to partner with
     Nations communities, Northwest Communities Holdings         employees and 8 primary manufacturing Divisions.                       their business. Engaging the
     Ltd., representing seven Metis communities, and             Tolko now operates 18 primary manufacturing Divisions                  workforce is the key to long term
     Investment Saskatchewan.                                    and employs nearly 5,000 people in Western Canada.                     success.”
     The same year Meadow Lake OSB opened, Tolko suffered        Riverside's solid reputation in the marketplace and
     a great loss. In the driest conditions BC had seen in 50    the diversity of its BC operations fit well with Tolko's


                                                                                                                                                                                  11
Marketing and sales … 1956 - 2006




John Thorlakson led           The Tolko brand is                    Premium 1 Papers reflects Tolko's         Tolko now markets to over 20            Today Brad Thorlakson leads
marketing and sales,          recognized worldwide                  and Canfor's commitment to                countries                               Tolko Marketing and Sales Ltd.
Lavington Sales Office                                              excellence




Elaine Evans, Manager, Sales
Administration, Vernon Office
                                                 goal to become a world-class, globally-competitive forest         Tolko continues to stay true to its early beginnings. The
“When I joined the company in August,
                                                 products company.                                                 core of the Company's culture was there from the start,
 1976 as receptionist, they had just
                                                                                                                   including personal accountability, innovation and
 moved into the new office building in
 Lavington and everyone asked “What              Looking Forward                                                   progressiveness, customer oriented and results driven, and
                                                                                                                   the importance of corporate values. Strategies proven
 are we going to do with all this                Change is a way of life for the Company and its people.           effective during the formative years continue to guide
 space?” Who knew that space, or lack            Many who have been with the Company over the years                company plans: strategic reinvestment, decentralized
 thereof, would become one of our                claim that they would not want it any other way. This             organizational structure, and geographic and product
 greatest challenges.                            quality is fundamental to Tolko's past and future success.        diversification. These basics provide a firm foundation in an
 Because the company was continually             This commitment to change was evident once again on               industry of ongoing change.
 growing, I was fortunate enough to              September 26, 2005, when government, community, and
 have the opportunity to grow with it.           industry leaders gathered near Slave Lake, AB, for the            Throughout the years, the Thorlakson family have
 I was able to change jobs without               groundbreaking of Tolko's new engineered wood                     surrounded themselves with strong, professional manage-
 changing companies.                             operation. Construction of the $250 million facility is           ment who draw on the Company's traditional values and
 We work very hard at Tolko, but we              underway and production is set to begin in fall 2007. The         successful philosophies to support Tolko's strategic growth
 also play very hard. It's been a fast and       new plant, Athabasca Division, is another example of              and sustained success. With Tolko's solid group of
 challenging 30 years for me and I look          product diversification. Although it is the most recent           employees—a team of five thousand individuals committed
 forward to many more.                           expansion announced, one can be assured that it is not            to excellence, hard work, and dedication—the future is
 Thanks to Al and John for the great             the last.                                                         sure to be as exciting as the first 50 years.
 opportunity.”

12
PO Box 39, 3203 30 Avenue
Vernon, British Columbia
Canada V1T 6M1
Tel: 250.545.4411
Fax: 250.549.5353

www.tolko.com               Printed in Canada

				
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