Conifex Timber Inc. is reducing its operating schedule to a one-shift basis at its Mackenzie, British Columbia sawmill commencing August 29, 2022. 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.
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.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.
