VANCOUVER, British Columbia, Nov. 28, 2025 (GLOBE NEWSWIRE) -- Conifex Timber Inc. ("Conifex", "we", "us", or "our") announced today that it will temporarily curtail operations at its Mackenzie, British Columbia sawmill for a planned four-week period commencing December 15, 2025.
The curtailment is being implemented in response to, among other things, continued weakness in North American lumber markets. Benchmark Western SPF prices have declined sharply over the past several months due to a slowdown in new residential construction, soft repair-and-remodel activity, elevated interest rates, and the impact of recently increased countervailing and anti-dumping duties on Canadian softwood lumber shipped to the United States. The duty and tariff increases have significantly compressed cash margins across the sector and resulted in operating losses for many producers.
Against this backdrop, Conifex believes that temporarily reducing production is the best course of action to minimize operating losses. The curtailment, as planned, is expected to reduce Conifex's production by approximately 13 million board feet.
While near-term market conditions remain challenging, Conifex continues to believe the fundamentals for SPF lumber are positive over the medium and long term. Structural housing undersupply in the United States, an aging housing stock, and improving affordability conditions as interest rates normalize are expected to support a gradual recovery in demand beginning in the second half of 2026. Curtailments across the industry have already driven North American lumber production to its lowest level in a decade, which is expected to help rebalance inventories and support a return to more sustainable pricing.
Conifex acknowledges recent federal government announcements on measures intended to support softwood lumber producers affected by elevated duties and tariffs. We have advanced applications under both the Large Enterprise Tariff Loan Program and the BDC Loan Guarantee Program, and we appreciate the federal government's ongoing engagement on these files. We remain optimistic that meaningful progress is forthcoming and encourage timely implementation of these programs to help stabilize operations, protect employment, and sustain critical manufacturing capacity in rural communities.
Our power generation operations and competitive log cost structure at Mackenzie continue to provide important support to our business during this difficult period. Conifex remains committed to the Mackenzie region, our employees, and our customers, and will continue to monitor market conditions closely.
"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.
For further information, please contact:
Trevor Pruden
Chief Financial Officer
(604) 216-2949
About Conifex
Conifex Timber Inc. and its subsidiaries operate forestry, sawmilling, and biomass power generation facilities in Mackenzie, British Columbia. Our primary business is the manufacture and sale of high-quality SPF lumber and the generation of renewable energy.
Forward-Looking Statements
Certain statements in this news release may constitute "forward-looking statements." Forward-looking statements are statements that address or discuss activities, events or developments that Conifex expects or anticipates may occur in the future. When used in this news release, words such as "estimates," "expects," "plans," "anticipates," "projects," "will," "believes," "intends," "indicate," "should," "could," "may," and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the current expectations and beliefs of Conifex's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of Conifex or the industry may be materially different from those implied by such forward-looking statements. Examples of such forward-looking information that may be contained in this news release include statements regarding: the resumption of operations at the mill; our perception of the industries or markets in which we operate and anticipated trends in such markets and in the countries in which we do business; our ability to supply our manufacturing operations with wood fibre and our expected cost of wood fibre; operating results and production; market conditions; lumber prices; the softwood lumber dispute with the US; potential negative impacts of duties or other protective measures on our products, such as antidumping duties or countervailing duties on softwood lumber; duties or other protective measures on the Canadian economy in general; the expected rates of such antidumping duties, countervailing duties, tariffs, and other duties imposed by the U.S. government, and any accounting entries required in respect thereof; demand and prices for our products; the availability and use of credit facilities or proceeds therefrom; the availability and scope of Governmental supports or subsidies. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements may include, but are not limited to, our future debt levels; that we will complete our projects in the expected timeframes and as budgeted; that we will effectively market our products; that capital expenditure levels will be consistent with those estimated by our management; our ability to obtain and maintain required governmental and community approvals; the impact of changing government regulations and shifting political climates; that current demand for lumber will continue to be in balance with supply; that transportation services by third party providers will continue uninterrupted; our ability to ship our products in a timely manner; that there will be no unforeseen disruptions affecting the operation of our Mackenzie power plant and that we will be able to continue to deliver power therefrom; our ability to obtain financing on acceptable terms, or at all; that interest and foreign exchange rates will not vary materially from current levels; the general health of the capital markets and the lumber industry; and the general stability of the economic environments within the countries in which we operate or do business. Forward-looking statements involve significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, without limitation: those relating to potential disruptions to production and delivery, including as a result of equipment failures, labour issues, the complex integration of processes and equipment and other similar factors; labour relations; failure to meet regulatory requirements; changes in the market; potential downturns in economic conditions; fluctuations in the price and supply of required materials, including log costs; fluctuations in the market price for products sold; foreign exchange fluctuations; trade restrictions or import duties, tariffs or other protective measures imposed by foreign governments; availability of financing (as necessary); and other risk factors detailed in our 2024 annual information form dated March 12, 2025 and our 2024 annual MD&A dated March 12, 2025 available under Conifex's profile on SEDAR+ at www.sedarplus.ca and other filings with the Canadian securities regulatory authorities. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and Conifex does not undertake any obligation to publicly revise them to reflect subsequent events or circumstances, except as required by applicable securities laws.
