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Conifex Secures Up to C$11M for British Columbia Sawmill Modernization
Conifex Timber has secured up to C$11 million in federal funding to modernize its Mackenzie sawmill in British Columbia. The investment will support equipment upgrades, automation and improved production efficiency as Canadian lumber producers continue to face U.S. trade pressures.
By Paul Ploumis
Published: October 29, 2026
Key Points
- Federal support: Up to C$11 million under Canada's Regional Tariff Response Initiative.
- Funding structure: C$10 million repayable and C$1 million non-repayable.
- Modernization: Kiln upgrades, automated equipment and improved production systems.
- Earlier financing: Conifex secured a separate federal loan of up to C$30 million in September.
MONTREAL (Scrap Monster): Canadian lumber producer Conifex Timber Inc. has secured up to C$11 million in federal funding to modernize its sawmill in Mackenzie, British Columbia, as the company works to improve efficiency and competitiveness amid challenging lumber market conditions.
Announced October 28, the funding will be provided through Pacific Economic Development Canada (PacifiCan) under the Regional Tariff Response Initiative.
The package includes a repayable contribution of up to C$10 million and a non-repayable contribution of up to C$1 million.
Funding to Support Sawmill Equipment and Kiln Upgrades
According to PacifiCan, the modernization program includes upgrades to material transfer systems, improvements to five lumber-drying kilns and the installation of automated production equipment.
The improvements are intended to increase productivity, enhance lumber quality and reduce operating costs at the Mackenzie facility.
The latest funding follows a separate C$30 million federal loan announced in September under Canada's Large Enterprise Tariff Loan program to support Conifex's operations and liquidity.
Conifex reported a 60% year-over-year decline in second-quarter lumber production as weak demand and U.S. trade costs continued to affect Canadian softwood lumber producers.
ScrapMonster Edge: Modernization Funding Targets Costs, Not Just Liquidity
Conifex's latest federal support serves a different purpose from its September C$30 million loan.
The earlier financing was intended to support liquidity and the Mackenzie restart, while the new package targets equipment modernization and production efficiency.
Industry takeaway: Only C$1 million of the new funding is non-repayable. The remaining C$10 million is repayable, making the project's expected cost savings and productivity improvements important to its long-term economics.
Additional source: Pacific Economic Development Canada, October 28, 2026.
Courtesy: www.lesprom.com