Conifex Timber Inc. will temporarily curtail operations at its Mackenzie, British Columbia sawmill for four weeks beginning December 15, 2025. The company said the curtailment responds to continued weakness in North American lumber markets.
Benchmark Western SPF lumber prices have declined sharply in recent months due to reduced residential construction, slower repair-and-remodel activity, elevated interest rates, and higher countervailing and anti-dumping duties on Canadian softwood lumber shipped to the United States. These factors have compressed cash margins and caused operating losses across the industry.
Conifex stated that the temporary shutdown will reduce production by about 13 million board feet. The company said this measure is intended to minimize operating losses while maintaining readiness to resume full capacity when market conditions improve.
Industry-wide curtailments have driven North American lumber production to its lowest level in a decade, which Conifex said should help rebalance inventories and support a return to sustainable pricing levels.
Conifex acknowledged recent federal actions expanding the BDC Softwood Lumber Guarantee Program and advancing the Large Enterprise Tariff Loan Program to assist producers affected by elevated duties. The company has submitted applications under both programs and urged timely implementation to stabilize operations and protect employment in rural communities.
“While the decision to reduce our year-end operating schedules was difficult, and we regret the impact this will have on our employees, their families, and the community, we are encouraged by the fact that the Mackenzie TSA has the highest sawlog surplus of any TSA in the Interior region of B.C. The recent federal announcement expanding the BDC Softwood Lumber Guarantee Program and providing additional support through the Large Enterprise Tariff Loan facility is an important step, and swift implementation will be critical to capturing the benefits of these programs. We do not anticipate any challenges securing sawlogs to maintain capacity operations in the future once market conditions permit a return to full operations,” said Andrew McLellan, President and COO of Conifex.
Conifex added that its biomass power generation operations and competitive log cost structure at Mackenzie continue to provide critical support during this period.
