Conifex Timber has announced that it is reducing its operating schedule to a one-shift basis at its Mackenzie, British Columbia sawmill commencing August 29. The reduction is the result of acute transportation challenges that have afflicted the overall industry since about November 2021, and which continue to persist. The reduced operating schedule is planned for up to six weeks. Conifex will closely assess and adjust the operating schedule as supply chain conditions evolve. It is anticipated that the reduced operating schedule will impact production capacity by approximately 26 million board feet.
“We have experienced persistent rail transportation challenges that have impacted our operations. These challenges have forced us to align our shift configuration with those in place at other interior BC operations to manage unsustainable inventory levels. The decision to reduce our operating schedule was difficult, and we regret the impact this may have on our employees, their families, and the community,” said Ken Shields, chairman and CEO.
As the rail network is a critical connector to communities and businesses, Conifex appreciates the initiative launched by the Resource Municipalities Coalition to study the freight rail network and rail service in northern British Columbia. Conifex looks forward to hearing of their progress and the response by rail carriers to their recommendations.
Conifex continues to work with its engineers and contractors on a work plan to resume operations at its power plant. Conifex currently expects to resume power generation in or about late October 2022. Conifex has commenced an insurance claim to recover business interruption and property damage costs, subject to customary deductibles and limits.
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