Conifex Wins C$30 Million Federal Loan to Revive B.C. Sawmill

Rubber and Wood  |  2026-09-21 06:05:55   |   By

Lumber production fell sharply to 14 million board feet, down 60% year over year and 35% from the first quarter.

Summary

  • C$30 Million Financing Supports Mackenzie Restart

    Conifex Timber has secured up to C$30 million through a seven-year Large Enterprise Tariff Loan. The funding will help restore two-shift operations, rehire workers and restart lumber production and renewable power generation.

  • Additional C$11 Million for Mill Improvements

    The company’s existing lumber lender has committed to reimburse up to C$11 million in capital expenditures. The investment is aimed at improving the Mackenzie mill’s operating performance and EBITDA.

  • Weak Q2 Results Highlight Financial Pressure

    Conifex reported a C$10 million second-quarter net loss, compared with C$8 million a year earlier, while EBITDA remained negative at C$6 million. Lumber production dropped 60% year over year to 14 million board feet, with quarterly shipments reaching 24 million board feet.

SEATTLE (Scrap Monster): Canadian lumber producer Conifex Timber Inc. announced that it has secured up to C$30 million in federal financing to strengthen liquidity and support the planned restart of its Mackenzie sawmill in British Columbia.

The seven-year Large Enterprise Tariff Loan carries a market-based interest rate and is backed by substantially all of Conifex’s assets. The company intends to use the funds to restore normal two-shift operations, bringing employees back and restarting both lumber production and renewable electricity generation at its 36-megawatt biomass facility.

ALSO READ:

Conifex Q1 Loss Widens Amid Softwood Lumber Headwinds

Lumber Market Downturn Prompts Conifex to Halt Mackenzie Sawmill in December

Conifex’s existing lumber lender has separately committed to reimburse up to C$11 million in capital expenditures aimed at improving the mill’s operating performance and EBITDA.

The financing follows a difficult period for the Mackenzie operation. Conifex posted a C$10 million net loss in the second quarter, compared with C$8 million a year earlier, while EBITDA remained negative at C$6 million.

Lumber production fell sharply to 14 million board feet, down 60% year over year and 35% from the first quarter. The company’s lumber shipments totalled 24 million board feet during the quarter.

As part of the financing arrangements, Conifex will issue warrants to the Canada Enterprise Emergency Funding Corporation and additional warrants to PenderFund.