Conifex’ Fort St. James sawmill will be temporarily reducing its production from Jan. 1, 2019, according to a press release issued Nov. 30.
The Northern B.C. mill cites log costs and market conditions for the production cuts, which will affect around 70 employees in Fort St. James.
The reduction in operation will last until around mid-2019, according to the news release, and will result in an estimated 25 per cent reduction in Conifex’ B.C. lumber production.
“Moving to a single line configuration at Fort St. James in Q1 and Q2 lowers cash production costs and helps mitigate the combined impact of fibre supply issues and low lumber prices.” said Ken Shields, chair and CEO, in the news release.
“This is a difficult decision but we believe it’s the best option for ongoing sustainability at Fort St James given current market conditions. We will be seeking to mitigate the impacts on our employees as much as possible.”
Conifex’s Fort St. James operation is already currently shut down, after the company announced a temporary curtailment affecting between 180 and 200 workers. At the beginning of November, Conifex said the shutdown would last for at least four weeks.
READ MORE: Conifex announces a temporary curtailment in operations at Fort St. James mill
Conifex said it expects that a majority of its lumber production will be sourced from the lower cost US South supply region in the first half of 2019.
The company has two sawmills in Arizona, as well as its Fort St. James and Mackenzie, B.C. operations.
Conifex has not yet replied to the Caledonia Courier‘s request for comment.
More to come.
newsroom@caledoniacourier.comLike us on Facebook and follow us on Twitter
