Insufficient demand and increased production costs have prompted Dow Chemical Canada to halt production of Woodstalk, which has been positioned as a more environmentally-friendly, high quality alternative to wood-based fiberboard and particle board. In announcing its decision to shut the division that produces Woodstalk-Dow BioProducts in Elie, Manitoba, Canada-Dow Chemical officials said demand "was not at a level high enough to generate the returns necessary to sustain the business." The company added that increased natural gas and oil "made it ever more difficult to justify continued operation of the business and the plant." It will cease manufacturing the material by Dec. 31.