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Conifex shuts operations at B.C. sawmill for two weeks

Conifex Timber has announced that it is temporarily curtailing its Mackenzie, B.C. sawmill operations for two weeks starting October 11, which will impact production capacity by approximately seven million board feet in the fourth quarter.

The company cited the steep decline in lumber prices and B.C. Ministry of Forests’ policies and practices “which position sawmills in the B.C. interior region at the high end of the industry cost curve” as reasons for the reduction. Conifex will continually monitor and assess industry and market conditions as they evolve.

“This was a difficult decision. We regret the impact this will have on our employees, their families and the community. We are exploring various initiatives to address concerns that disadvantage sawmill workers, the District of Mackenzie and other forest industry stakeholders,” said Ken Shields, chairman and CEO.

In late August, Conifex reduced its operating schedule to a one-shift basis for six weeks due to the logistical challenges that affected the industry since last year.

Power plant update

Conifex continues working with its engineers and contractors to resume operations at its power plant. In a statement, Conifex said necessary repairs have been faced with global supply chain issues impacting replacement parts.

Conifex currently expects to resume power generation in or about early December 2022. Conifex is working with its adjusters on an insurance claim to recover business interruption and property damage costs, subject to customary deductibles and limits.