Conifex Timber Inc., formerly West Fourth Capital Inc., has completed the acquisition of certain sawmill and related assets located at or near Mackenzie, British Columbia as well as a related equity financing and an arrangement with DTR Wood Acquisitionco Ltd, company said in a statement received by Lesprom Network.
The sawmills and other assets were acquired from Abitibi-Consolidated Company of Canada and its affiliate. The Mackenzie Assets included two sawmills, including planer mills, with a combined annual production capacity of 445 million board feet of lumber on a two-shift basis, a forest licence with an annual allowable cut of approximately 932,500 cubic metres, a steam/power plant and associated turbine and boiler, and a paper mill (excluding the headbox). Conifex intends to dispose of the paper mill assets but will retain the power generation assets.
Conifex CEO Ken Shields stated: "We are pleased to have secured a fibre and manufacturing base in Mackenzie with such exciting future potential. Now that Sinar Mas has purchased and plans to restart the idled NBSK pulp mill in Mackenzie, we look forward to working with the pulp mill and other stakeholders on a priority basis to develop an operating plan which will enable us to resume harvesting and manufacturing operations on a timely basis."
Conifex is an independent British Columbia company formed for the purpose of investing in the forest industry in the interior region of British Columbia and elsewhere in Canada.
