$11-million investment

Mackenzie sawmill receives $11-million investment

Nov 3, 2026 | 3:32 PM


MACKENZIE – Hundreds of jobs at the Conifex sawmill in Mackenzie are expected to stay as the company moves forward with upgrades backed by an $11-million federal investment, a $10-million repayable contribution and a $1-million non-repayable contribution. The investment is being delivered through PacifiCan’s Regional Tariff Response Initiative in British Columbia.

Conifex president and chief operating officer Andrew McLellan said the investment will support jobs at the mill and beyond.

“What the funding really means is that we’re going to be able to continue to employ hundreds of people in the community of Mackenzie at our mill, plus a bunch of suppliers and contractors as well,” McLellan said.

The company plans to use the investment for two main parts of its Mackenzie operation.

One part is about improving lumber-drying capacity and letting the mill process more green balsam lumber. Five kilns are set to be modernized under the federal plan.

Mackenzie Mayor Peter Kyllo said drying capacity has been limiting production.

“The bottleneck, especially with the balsam wood coming in, is having more efficient kilns,” Kyllo said. “It slows down as they try to dry the material out, so it’ll help them become more efficient.”

The second part focuses on upgrading the mill’s planer and lumber-finishing operations. Conifex says these changes will improve lumber quality and help reach new markets.

McLellan said the upgrades could help the company reach more customers in Canada and internationally, including buyers in Japan.

The work will happen in stages. McLellan said some upgrades have already started and should finish in early 2027. The kiln project is set for 2027 and 2028, since it needs more site prep.

Conifex says the projects will keep current jobs at the Mackenzie sawmill. Kyllo described the announcement as good news for a community with one remaining large employer.

“Oh, it’s definitely good news,” he said. “We only have one large employer. It’s the last large employer left. And anything to keep it going is a boom for our town.”

Kyllo said he hopes the improvements will help the mill run more smoothly and mean fewer interruptions for workers, though that isn’t guaranteed.

“Hopefully it gets the mill to the place where they can keep running smoothly and keep the guys employed throughout the year,” he said.

McLellan also thanked those who have supported the operation during tough times.

“I’d like to acknowledge and thank our employees for their resilience as we work through a very challenging time,” he said.

McLellan also thanked Mackenzie’s local leaders, as well as local MLAs and MPs. He mentioned both the outgoing and incoming mayors.

The federal government says the investment is meant to help Conifex cut production costs, boost productivity, and deal with tariffs and changing trade conditions.

McLellan said northern B.C.’s forest industry is under pressure from lumber tariffs and global supply chain challenges.

The company expects all funded capital work to finish by 2028.